Live e‑Commerce Fuels Counterfeit Trade, Tax Revenue at Risk

The United States Trade Representative’s National Trade Estimate released in October 2025 urges Indonesia to curb counterfeit goods circulating through Jakarta’s Mangga Dua market. Counterfeit items include clothing, bags, shoes, cosmetics, hazardous medicines and pirated software. Sales have moved from offline stalls to live‑commerce platforms such as Shopee Live and TikTok Live.

Fake products are sold at steep discounts, for example a shoes priced at Rp2 million is offered for Rp500 thousand. High demand is driven by consumers’ desire to appear branded at low cost and by social‑media trends, while legal sanctions are limited to seizure and do not target buyers. Indonesia’s PMK 37/2025 imposes a 0.5 % withholding tax (PPh 22) and VAT on marketplace sellers, yet the tax also applies to illegal goods, creating a paradox.

Weak enforcement may erode investor confidence, prompting global brands to consider relocating production abroad. Without effective platform and regulatory action to block the supply chain of counterfeit goods, tax revenue will continue to slip. Coordination among the Tax Office, Customs, and relevant ministries is seen as essential to provide legal certainty and sustain digital‑economy growth. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/komunitas/lomba/1814444/di-balik-live-e-commerce-lubang-penerimaan-pajak-dan-keadilan-fiskal).