EU Grants Indonesia Multi-Entry Schengen Visa as Landmark Trade Deal Nears Completion

The European Union has granted multi-entry visa privileges to Indonesian nationals visiting the region for a second time, European Commission President Ursula von der Leyen announced during a meeting with President Prabowo Subianto in Brussels on Sunday. 

The announcement comes as Indonesia and the EU finalize the long-negotiated Comprehensive Economic Partnership Agreement (CEPA), which will eliminate tariffs on most Indonesian imports into the bloc. She said a decade of negotiations on the Comprehensive Economic Partnership Agreement has been finally concluded for imminent ratification. 

“I’m pleased to announce that the European Commission has adopted a decision on a visa cascade. It means that from now on, Indonesian nationals visiting the European Union for a second time will be eligible for a multi-entry Schengen visa,” she told Prabowo during a joint press conference, which was streamed live by the Presidential Secretariat’s YouTube channel. 

The multi-entry Schengen visa allows holders to travel freely across 29 European countries that are part of the Schengen Area, without undergoing border checks between those countries. The visa is typically issued for tourism, business, family visits, or study purposes. 

Depending on the applicant's travel history and eligibility, a multi-entry visa can be valid from one to five years, permitting stays of up to 90 days within any 180-day period. This facility is particularly valuable for frequent travelers, as it reduces the need for repeated visa applications and enhances mobility for business, education, and cultural exchange. 

For Indonesian nationals, this development is expected to facilitate not only tourism but also greater economic and academic engagement with Europe. 

Von der Leyen said the visa facility would make it easier for Indonesians to visit, invest, study, and build connections with Europe. 

During the joint press conference, she also highlighted shared values between Indonesia and the EU. 

“We're both vibrant and diverse democracies. As a matter of fact, we found out that Indonesia's national motto is unity in diversity and one of our core sentences in the EU is united in diversity. So, we share common values and ambitions,” she said. 

“For example, we are both committed to a clean energy transition that leaves no one behind. And I'm so glad that our just energy transition partnership is a success.” 

Source: Jakarta Globe 

Govt Requires E-Commerce to Collect Income Tax from Sellers

 
The Finance Ministry has issued a new regulation requiring e-commerce players to collect income tax from sellers on their platforms, as the government seeks to boost tax compliance among online merchants.  

This rule is outlined in Finance Ministry Regulation No. 37/2025, which took effect on July 14.  

The regulation requires online marketplaces operating in the country to withhold and remit a 0.5 percent income tax on sellers earning more than IDR 500 million (USD 30.700) annually.  

Online marketplaces that will be subject to the new rule include TikTok Shop and Tokopedia, both owned by Chinese digital giant ByteDance, Shopee of Singapore’s Sea Limited, Lazada of China’s Alibaba Group and Blibli of Djarum subsidiary Global Digital Niaga. It only exempts certain sellers, such as courier services, phone credit vendors and jewelry merchants.  

Online merchants are required to report their sales invoice information to the e-commerce platform, which will then forward it to the Tax Directorate General. Although the rule came into effect immediately, platforms have been given one month to comply. 

Tax Directorate General spokesperson Rosmauli said the regulation was introduced amid a surge in online marketplace transactions in Indonesia, especially after the COVID-19 pandemic, which accelerated the shift in consumer behavior toward digital platforms.  

She added that the growth was also driven by the country’s large population, rising smartphone and internet usage and advancements in financial technology that have made online transactions more accessible.  

“Therefore, regulation that simplifies tax administration is necessary, particularly for businesses transacting via electronic systems,” Rosmauli said on Monday, as quoted by Antara.  

The regulation also aims to create a “level playing field” between digital and conventional businesses, with she noting that similar measures have been implemented in countries such as Mexico, India, the Philippines and Turkey.  

Separately, in a statement published in late June, Rosmauli emphasized that the regulation does not introduce a new tax but instead marks a shift in the collection mechanism to enhance compliance.  

“This is essentially a change in the collection process. Instead of self-reporting, online sellers will have their income tax withheld directly by the platform,” she stated, adding that the new scheme would simplify compliance by integrating tax collection into the platform’s system and reducing the burden on sellers.  

The rollout of the e-commerce tax regulation comes amid sluggish industry growth over the past few years.  

After years of rapid expansion, Southeast Asia’s largest digital economy has experienced a sharp slowdown, driven by squeezed margins and a growing focus on profitability. Indonesia’s gross merchandise value (GMV) from online transactions grew by just 5 percent in 2024, following an even slower growth rate of 3.7 percent in 2023, according to a report released in June by Singapore-based venture outfit Momentum Works.  

Last year’s growth was on par with the country’s GDP growth of 5.03 percent, placing Indonesia well behind regional peers such as Thailand and Malaysia, both of which recorded double-digit gains in their online retail sectors. 
 

Source: The Jakarta Post 

Prabowo Wraps Diplomatic Tour in Belarus, Eyes Trade and Food Security

Indonesian President Prabowo Subianto confirmed that he concluded his 15-day diplomatic tour with a brief visit to Minsk, Belarus, aimed at broadening Jakarta’s trade cooperation with the Eastern European country. 
 

He said he met with Belarusian President Alexander Lukashenko and noted that Indonesia and Belarus have significant potential for cooperation in the trade of various essential goods, especially fertilizers. 

“Belarus needs a wide range of commodities from Indonesia, whereas we need fertilizers, including potash,” he told the media upon landing at Halim Perdanakusuma Air Base in Jakarta on Wednesday. 
 
The president emphasized that his visit to Belarus was also part of the government’s efforts to strengthen Indonesia’s food security, which he believes partly depends on the availability and accessibility of fertilizers for domestic farmers. 
 
After wrapping up his agenda in Minsk, Prabowo flew directly back to Indonesia, concluding a diplomatic tour that also took him to Saudi Arabia, Brazil, Belgium, and France. 
 
According to the Belarusian Telegraph Agency (BelTA), Prabowo and Lukashenko spent nearly three hours discussing “the widest possible range of topics” in an informal setting on Tuesday (July 15). 
 
President Prabowo said it was an honor to meet Lukashenko at his home. He also invited his Belarusian counterpart to visit Indonesia. 
 
“It is a great honor to be welcomed into your home,” he said. “I very much hope that in the near future you will find the opportunity to visit my home in Indonesia.” 
 
Meanwhile, Lukashenko told Prabowo that he is among the few major world leaders he has hosted at his residence since its renovation, alongside Russian President Vladimir Putin and Chinese President Xi Jinping. 
 
He also expressed his readiness to discuss issues of common interest and his eagerness to visit Indonesia again. Lukashenko previously visited Indonesia in 2013, when he was received by then-President Susilo Bambang Yudhoyono. 

Source: Antara News