Indonesian tax, payment and compliance terms, for developers

The Directorate General of Taxes' core tax administration system, in service since 1 January 2025. Registration, tax payments, tax invoices and returns run through it, so an ERP that issues Faktur Pajak treats Coretax as the record and reconciles against it.

The tax base: the selling price, replacement value, import value, export value or other value (nilai lain) used to calculate the tax owed, as the VAT law defines it. The PPN on an invoice line is the rate times the DPP, so an ERP stores the DPP as its own field rather than deriving it from the total.

A tax base set at a value other than the price. Since PMK 131/2024 raised PPN to 12% on 1 January 2025, goods and services outside the luxury category are taxed at 12% of a DPP Nilai Lain of 11/12 of the base, which works out at 11% of the price; PMK 11/2025 moved the special schemes onto the same 12% × 11/12 form. Tax engines read the coefficient from effective-dated data.

The standard-format slip a payer issues as proof that income tax was withheld or collected, covering income tax other than the employment-related Articles 21 and 26. In an ERP it is generated from the payable that withheld PPh 23 or a similar tax, and gives the payee a record of the tax already taken.

A Faktur Pajak in electronic form, made and electronically signed in the e-Faktur module of the Portal Wajib Pajak or of an application integrated with DJP's system. It must be uploaded and approved by DJP by the 20th of the month after it was made; an e-Faktur that is not approved is not a Faktur Pajak.

The tax invoice: proof of PPN collected, made by a PKP that delivers taxable goods or services. It is separate from the commercial invoice, although PER-11/PJ/2025 lets a sales invoice count as an e-Faktur when it carries the required details and goes through the e-Faktur module, so an ERP derives both from the same delivery.

A 22-digit identifier for each place of business: the head office's 16-digit NPWP followed by a 6-digit sequence, with the head office's own ending in 000000. It marks a location, not a separate taxpayer, so multi-branch ERPs put it on documents while tax obligations stay with the NPWP.

The taxpayer identification number used in tax administration. Since 1 July 2024 DJP's services use the NIK as the NPWP for resident individuals and a 16-digit NPWP for other taxpayers, phasing out the 15-digit format, so store it as a fixed-length digit string, never an integer that drops leading zeros.

The serial number DJP gives a Faktur Pajak. Under PER-11/PJ/2025 the 17-digit code and serial is a 2-digit transaction code, a 2-digit status code and a 13-digit NSFP that DJP assigns automatically when the e-Faktur is uploaded and approved, so the number does not exist while the invoice is still a draft.

Output tax: the PPN a PKP must collect on its taxable deliveries of goods and services and on its exports. It is what the sales side of an ERP's tax ledger accumulates, and in each tax period it is set against the creditable input tax of the same period.

Input tax: the PPN a PKP should already have paid when acquiring or importing taxable goods and services. Input tax in a tax period is credited against output tax of the same period, which is why PPN paid on imports goes to an input-tax account instead of inventory cost.

A tax application service provider appointed by the Director General of Taxes. PER-11/PJ/2025 lets a PKP create e-Faktur through a PJAP's application integrated with DJP's system, which is the route for issuing invoices straight from an ERP instead of through the Coretax portal.

A taxable entrepreneur: a business that delivers taxable goods or services subject to PPN under the VAT law. A PKP collects PPN and must issue a Faktur Pajak for each such delivery, so an ERP records the PKP status of customers and vendors before charging or crediting PPN.

Income tax collected by parties the Minister of Finance appoints: government treasurers paying for goods, certain bodies collecting from importers and other sectors, and sellers of very luxurious goods. Its base, nature and rate are set by Minister of Finance regulation, and payers without an NPWP face a rate 100% higher.

Income tax withheld by a government body, domestic company, event organiser or permanent establishment when it pays a domestic taxpayer dividends, interest, royalties, prizes, rent, or fees for technical, management, construction, consulting and other services. The payer deducts it from the payment, and the rate is 100% higher when the payee has no NPWP.

Indonesia's value added tax. Under PMK 131/2024 the rate has been 12% since 1 January 2025: luxury goods subject to PPnBM are taxed on the full selling price or import value, and everything else on a DPP Nilai Lain of 11/12, an effective 11%. Keep the rate and base as effective-dated data rather than constants.

Sales tax on luxury goods, charged on top of PPN. The goods it covers are listed by government regulation, among them certain motor vehicles and goods such as luxury homes, aircraft and yachts. Under PMK 131/2024 these are also the goods that take PPN on the full price, so the item master needs a luxury-goods flag.

The periodic VAT return in which a PKP reports the PPN and PPnBM actually owed for a tax period, the crediting of input tax against output tax, and the payments made. An ERP's month-end tax close produces its figures from the period's tax invoices.

Import duty: the state levy charged under the customs law on goods brought into Indonesia. It is usually a percentage of the customs value at the rate for the goods' tariff line, so an ERP needs the right HS code before it can cost an import.

The goods classification code that decides which import duty rate applies. PMK 26/PMK.010/2022 sets Indonesia's classification system, based on the Harmonized System 2022 and the ASEAN Harmonised Tariff Nomenclature, together with the duty rate for each line, so an ERP stores the code per item and re-checks it when the tariff book changes.

Import value: the value import duty is calculated on plus the levies charged under customs and excise rules, excluding PPN and PPnBM. In practice that is the CIF value plus bea masuk and other levies, and it is the base for PPN on imports, so a landed-cost engine computes it after duty rather than from the supplier invoice.

Customs value: the value import duty is calculated on. The customs law makes it primarily the transaction value, which includes transport and insurance to the port of import, so it is in effect a CIF value. ERPs that buy on FOB terms reconstruct it by adding the freight and insurance they paid.

The import customs declaration: the statement made to fulfil customs obligations when importing goods. Import duty and taxes are settled against it before customs releases the goods, and its figures are what a landed-cost true-up reconciles to.

The letter customs issues when an officer sets a different tariff or customs value from the one declared for imported goods. PMK 136/PMK.04/2022 lists it among the determinations an importer can object to when it leaves import duty underpaid, so a landed cost booked at goods receipt may need a later adjustment.

Bank Indonesia's retail payment infrastructure for real-time interbank transfers, available 24/7, which went live in December 2021 starting with individual credit transfers. Developers meet it behind refunds and payouts sent by bank transfer.

The service fee a payment service provider charges a merchant on each QRIS transaction. Bank Indonesia sets the rates by merchant category, takes no share of the fee, and bars passing it on to the consumer, so a checkout must not add a QRIS surcharge and rate thresholds belong in configuration.

A payment service provider: a party providing source-of-funds information, payment initiation or acquiring, management of sources of funds, or remittance. Anyone acting as a PJP needs Bank Indonesia's licence first, which is why a merchant app reaches payment rails such as QRIS through a licensed provider rather than directly.

Bank Indonesia's national QR payment standard, launched on 17 August 2019 and mandatory for payment QR codes since 31 December 2019, so one code can be paid from any registered bank or e-wallet app, up to Rp10,000,000 per transaction. Software uses the dynamic form, generated per order with the amount embedded, through a provider BI has approved to process QRIS.

Bank Indonesia's national standard for payment open APIs, set by PADG 23/15/PADG/2021: technical and security standards, data standards and governance guidelines for API categories such as registration, balance information, transaction history, credit transfer and debit transfer. Bank and payment-provider APIs that follow it share one contract, so a second SNAP integration looks much like the first.

A number issued for a customer or a payment that the payer transfers money to, so the incoming transfer identifies who paid. In SNAP the number is the provider's company code (partnerServiceId) followed by a customer number, and services such as create, inquiry, payment and status sit under a versioned transfer-va path.

Specific personal data: the categories Article 4 of UU PDP singles out because misuse harms the subject more, namely health data, biometrics, genetic data, criminal records, children's data and personal financial data, plus others set by regulation. An e-KYC face match, a clinic record or a lending app's financial data all fall into it.

The Home Affairs directorate general behind the population database, the NIK and the KTP-el. Access is not open: an Indonesian legal entity uses population data only as an approved user under a cooperation agreement, and since Permendagri 17/2023 it must hold a certified information-security standard and may not pass the data to third parties.

The Ministry of Communication and Digital Affairs, established by Perpres 174/2024, which revoked the regulation on the former Kominfo. Its functions include digital infrastructure, digital space supervision and personal data protection, so older references to Kominfo in registration guides and legal databases now lead to Komdigi.

The electronic identity card: a resident identity card with a chip, issued as official proof of identity. Its chip data is read with a card reader that verifies the holder's fingerprint 1:1, while matching a card against population records goes through Dukcapil access, which is why an e-KYC flow does more than photograph it.

The population identity number: unique, single and permanent to each person registered as an Indonesian resident. On tax documents it can stand in for a resident individual's NPWP: PER-11/PJ/2025 lets a Faktur Pajak identify such a buyer by NPWP or NIK. Systems store it as a fixed-length digit string and treat it as personal data.

The national data centre: under Perpres 95/2018 on electronic-based government, a set of interconnected data centres shared by central and regional government agencies. It serves government workloads rather than private companies, so it matters to developers building systems for an agency.

The data protection officer that Article 53 of UU PDP requires a controller or processor to appoint. The Constitutional Court's decision 151/PUU-XXII/2024 reads the criteria as alternatives, so any one triggers the duty: processing for public services, core activities needing large-scale regular and systematic monitoring, or large-scale processing of specific or crime-related personal data.

Personal data controller: any person, public body or international organisation that, alone or jointly, decides the purpose of processing personal data and controls that processing. Whoever decides why the data is processed carries the controller's duties, such as proof of consent and answering data subjects.

Personal data processor: any person, public body or international organisation that, alone or jointly, processes personal data on behalf of a controller. A vendor that hosts, analyses or transforms records only on the controller's instructions sits here, and UU PDP still applies security duties to it.

A private-scope electronic system operator: a system run by a person, business or the public, as opposed to the public scope run by state agencies. PP 71/2019 requires every operator to register before users start using the system; private-scope operators may keep systems and data abroad if supervision and law enforcement stay effective, while public-scope ones must keep them in Indonesia unless the storage technology is unavailable at home.

Law 27 of 2022 on Personal Data Protection, Indonesia's general data protection law, with a two-year adjustment period that ended in October 2024. It covers processing in Indonesia and abroad where it has legal effect in Indonesia, and requires a lawful basis, 3 × 24 hours to act on requests such as correction and to notify a data protection failure, and security proportionate to risk.

The public legal entity UU 24/2011 set up to run Indonesia's health insurance programme. HR systems meet it when enrolling employees, and clinic or hospital software meets it when it integrates with BPJS Kesehatan's own systems.

The public legal entity that runs Indonesia's employment social security. UU 24/2011 gave it four programmes: work accident (JKK), old-age security (JHT), pension (JP) and death benefit (JKM); the job-loss programme JKP came later. Payroll and HR systems report workforce data to it.

Old-age security: a national social security programme, run on social insurance or compulsory savings principles, that pays the participant cash on entering retirement, on permanent total disability or on death. BPJS Ketenagakerjaan administers it, and HR systems handle it as its own programme in BPJS reporting.

Job-loss security for workers whose employment is terminated, given as cash benefits, access to labour-market information and job training. Under PP 6/2025 it is funded by a central-government contribution plus a recomposition of the work-accident (JKK) contribution, not a new deduction from the worker; PP 37/2021 had also drawn on the death-benefit (JKM) contribution.

Pension security: a national social security programme meant to maintain a decent standard of living when a participant loses income, or has it reduced, on reaching pension age or through permanent total disability. It is a defined-benefit programme, which sets it apart from JHT, and BPJS Ketenagakerjaan administers it.

Indonesia's statements of financial accounting standards, set by the Indonesian Institute of Accountants (IAI). From 1 January 2024 they were renumbered: standards that refer to IFRS start with 1 or 2 and the rest with 3 or 4, so the inventories standard, for example, is now PSAK 202. ERP documents written before 2024 use the old numbers.

The Indonesian term for a physical stock count: counting what is actually on the shelves, reconciling it against the system's book quantities and posting approved variances as adjustments. ERPs run it as a full count, often at year end, or as rolling cycle counts against a frozen snapshot.

The business identification number: proof that a business is registered to operate and its identity in licensing, issued through the OSS system. PP 28/2025 now governs it after replacing PP 5/2021, and developers meet it in business onboarding (KYB) forms next to the NPWP.

Micro, small and medium enterprises. PP 7/2021 groups them by business capital or annual sales, with the capital test used when a business is set up or registered. Registration flows and programmes aimed at small businesses use these categories, so software for them often stores the tier.