- Indonesia's place on the Etsy Payments list
- The VAT rule that is different for Indonesian shops
- Processing fees listed for an Indonesian bank account
- The rupiah deposit fee and how to dodge it
- ID and bank checks before the first payout
- What the first weeks look like
- Practical checklist for an Indonesian seller
- Frequently asked questions
Indonesian sellers can open an Etsy shop with a local bank account, because Indonesia is on Etsy's Etsy Payments list without a Payoneer requirement. The catch: Etsy says it charges VAT on applicable fees whatever your tax ID, and a rupiah deposit fee applies to payouts below its threshold.
Indonesian sellers have one thing in their favour on Etsy: the country is on the direct list, so there's no Payoneer detour. They also have two things to watch, a rupiah deposit fee and VAT on Etsy's own charges that you can't switch off with a tax ID. I've read through Etsy's help pages for Indonesia, and this is what they say.
Indonesia's place on the Etsy Payments list
Etsy publishes the countries where Etsy Payments is available. Some are marked with an asterisk, which means sellers there can only accept Etsy Payments with a Payoneer Payment Account. Indonesia isn't marked, so an ordinary Indonesian bank account is the route.
Etsy says it needs a residential address and a valid bank account in an eligible country, plus a valid credit, debit or reloadable prepaid card on file. It also says it can't send sale funds to a PayPal account or to a card. Where Etsy Payments isn't available, new shops usually can't open, so the country list is what decides whether you can start.
The VAT rule that is different for Indonesian shops
Etsy sorts countries into groups for VAT on seller fees, and Indonesia lands in the group where Etsy is required to charge VAT on applicable fees regardless of whether you've submitted a VAT ID. Many other countries can avoid the charge by adding an ID. In Indonesia, the charge applies either way.
You'll see the charges from the previous month in your payment account. Etsy also sends a monthly invoice on the first of the month listing the VAT-eligible seller fees and how much you were charged on them. If a sale is cancelled after a charge, you get a credit note with the next invoice. Keep these invoices; an accountant will want them.
Processing fees listed for an Indonesian bank account
The fee table lists Indonesia at 4.5% plus 7000 IDR per order for payment processing. That's on top of Etsy's other seller fees, and Etsy says processing fees are subject to VAT where it applies, which for Indonesia is the case described above.
A second cost shows up if your listing currency isn't the currency of your payment account. Etsy then converts the sale and charges a 2.5% currency conversion fee on the sale amount before the money reaches your balance.
The rupiah deposit fee and how to dodge it
Indonesia is one of a short list of countries with a minimum deposit, a fee threshold and a deposit fee. Etsy lists these figures for Indonesia:
| Deposit rule | Etsy's figure for Indonesia |
|---|---|
| Deposit minimum | 28,000.00 IDR |
| Fee threshold | 1,400,000.00 IDR |
| Deposit fee | 28,000.00 IDR |
| Daily deposit minimum | IDR 1,400,000.00 |
In plain terms, your available funds must be above the minimum to be paid out at all. If the deposit is above the minimum but below the threshold, Etsy takes the deposit fee from it. Above the threshold, there's no fee. Etsy's own suggestion is to move to a less frequent deposit schedule, so sales add up before each payout.
The daily option has a higher bar: a daily deposit only goes out if your available balance reaches the daily deposit minimum above, so most small shops will be better off with weekly or monthly payouts.
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ID and bank checks before the first payout
Before money moves, Etsy checks your identity. Expect to say whether you sell as an individual or a business, and to give a date of birth and home address. If Etsy wants more, it may request a passport, driver's license or other government photo ID. Etsy says the name printed on it has to use Latin characters and agree with your shop details, and a blurry or edited image gets rejected.
The bank side is gentler for shops outside the US. Etsy verifies those accounts with test deposits, and a shop opened after March 1, 2022 can add and verify its account after the first sale. So you can launch listings first and finish the banking step once an order lands. Whatever you choose, keep the bank account name consistent with your ID, because a mismatch is the sort of thing that delays a payout.
What the first weeks look like
Etsy says a new seller's funds are generally eligible for deposit 14 days after a sale, and sometimes longer depending on the shop's standing. After that, your deposit schedule decides when money moves, and Etsy's default for new sellers is weekly on Mondays. Etsy also says that if you owe more in fees than you've earned, you won't have anything available to deposit.
Practical checklist for an Indonesian seller
- Check the country list and pick Indonesia as your bank country, because Etsy says it can't change that later outside the Eurozone.
- Give Etsy a bank account that matches the name on your shop details.
- Price your listings in the same currency as your payment account if you want to avoid conversion fees.
- Choose a weekly or monthly deposit schedule while sales are small.
- Save every monthly VAT invoice, and ask a local accountant how to treat it.
Tax on your own Etsy income is for a local accountant or the Indonesian tax office, not for Etsy or me. For moving money around once it lands, how Wise works in Indonesia and what Payoneer offers in Indonesia cover the alternatives. If you're comparing neighbours, selling on Etsy from the Philippines has a similar deposit fee rule with different figures.
Frequently asked questions
Can I sell on Etsy from Indonesia?
Yes. Etsy lists Indonesia among its Etsy Payments countries without an asterisk, so you use an Indonesian bank account and don't need Payoneer.
Does Etsy charge VAT on seller fees in Indonesia?
Etsy says shops based in Indonesia are charged VAT on applicable fees regardless of whether a VAT ID has been submitted, and it sends a monthly invoice on the first of the month.
What is the Etsy deposit fee for Indonesia?
Etsy lists a deposit minimum of 28,000.00 IDR, a fee threshold of 1,400,000.00 IDR and a deposit fee of 28,000.00 IDR.
What are Etsy's processing fees in Indonesia?
Etsy lists 4.5% plus 7000 IDR per order for an Indonesia bank account.
Can Etsy pay me by PayPal in Indonesia?
No. Etsy says it can't send sale funds to a PayPal account or to a credit or debit card, so payouts go to your bank account.
