Indonesia Introduces Electronic Stamp Duty: A Quick Update For Companies

The concept of electronic stamp duty ("e-stamp duty") was introduced in Indonesia by Law No. 10 of 2020 regarding Stamp Duty (bea meterai), which came into effect on January 1, 2021 ("Stamp Duty Law"). The e-stamp duty was introduced to manage stamp duties for electronic documents, as more business was done online. To be clear, our reference to "electronic documents" in this context includes a document that is executed by electronic signature and also a pdf scan copy of a paper document signed with a wet ink signature. Both can be uploaded for e-stamp duty purposes as discussed below.

The Stamp Duty Law defines a duty stamp (meterai) as a label or strip in patch or electronic form, or other forms with security elements issued by the Government of Indonesia, which is used to pay tax on documents. In general, an e-stamp duty has the same applications as a physical stamp duty.