Banks in Indonesia Will Report Credit Card Transaction Data to the Tax Authority
Introduction
Indonesia is preparing to tighten oversight of financial transactions. The Ministry of Finance has introduced new rules requiring banks and credit card issuers to share transaction data with the national tax authority.
The requirement is established under Minister of Finance Regulation No. 8/2026, which came into force in February 2026.
Under the new regulation, financial institutions that issue credit cards will be required to regularly submit transaction reports to Indonesia’s Directorate General of Taxes (Direktorat Jenderal Pajak — DJP).
What Information Banks Must Report
According to the regulation, 27 banks and credit card issuing institutions must transmit transaction data to the tax authority.
The reports will focus on payments made at merchant locations using credit cards.
Each report will include the following information:
merchant identification details
merchant address
the year in which the transactions took place
total transaction volume
amounts of confirmed payments
amounts of cancelled transactions
The data will be transmitted electronically through the tax authority’s reporting system.
Banks are required to submit the first reports no later than March 2027, after which reporting will become a regular obligation.
Response From the Banking Sector
Banks have indicated that they are prepared to comply with the regulation. However, industry representatives have emphasized the importance of:
clear technical implementation guidelines
strict compliance with personal data protection standards
The tax authority has stated that the information collected will be used exclusively for tax supervision purposes.
What This Means for Businesses and Expats
The primary goal of the new regulation is to increase transparency in financial transactions and strengthen efforts to combat tax evasion.
At the same time, the changes may affect entrepreneurs and foreign business owners operating in Indonesia.
For Businesses
The regulation will allow the tax authority to obtain more accurate data about real business turnover, particularly in sectors where card payments are common.
This means:
discrepancies between card transaction volumes and declared income may trigger additional tax scrutiny
companies should ensure their accounting and tax reporting accurately reflect their actual turnover
businesses that rely heavily on cashless payments may face closer monitoring.
For Expats and Foreign Business Owners
For expatriates operating businesses in Indonesia, the regulation may also have practical implications.
Card payments made at commercial locations can now become part of tax analysis conducted by authorities, particularly for companies operating in sectors such as:
tourism
hospitality
services
retail trade.
As a result, proper tax structuring and compliance become even more important for foreign-owned businesses.
Part of a Larger Digitalization Strategy
Experts view this measure as part of a broader government effort to modernize Indonesia’s financial oversight system.
By integrating financial data with tax administration tools, authorities aim to create a more transparent and digitally monitored economy.
For businesses operating in Indonesia, the key takeaway is clear: accurate accounting, proper tax reporting, and compliance with local regulations will become increasingly important as financial monitoring becomes more sophisticated.
