E-commerce tax: Is it an opportunity or a defiance for Indonesian government during the Covid-19 pandemic?

Indonesian Government established tax regulation, PMK No. 48/PMK.03/2020 concerning taxes on trade through electronic systems. This regulation was rejected by the public, business entities, and digital commercials, while basically the tariff used was 10% for sales in accordance with the value added tax (VAT) rate. This study aims to analyze whether the application of the e-commerce tax provides an opportunity or challenge in obtaining a source of state revenue to restore the Indonesian economy in the midst of Covid 19. This also supports the point eight of SDGs, economic growth and decent work. By conducting literature review and in-depth interviews, the results indicate that the implementation of e-commerce tax regulations provides an additional source of state revenue. On the other hand, it presents challenges in collecting electronic business taxpayers who are considered difficult to identify. In addition, a review is needed to strengthen and clarify the regulations governing e-commerce taxes.