Get Ready, Government Begins Formulating E-commerce Tax

E-commerce in Indonesia has seen a rapid growth in the last few years. The government thus has begun formulating a new tax for e-commerce. The growth of e-com
E-commerce in Indonesia has seen a rapid growth in the last few
years. The government thus has begun formulating a new tax for e-commerce.
The growth of e-commerce is in
line with the growth of internet users in Indonesia. A survey by the
Association of Indonesian Internet Providers (APJII) revealed that there’s an
increase in the number of internet users in 2017.
The number of internet users
in Indonesia in 2017 was recorded to be 143.26 million, a 7.37% increase
compared to the number in the previous year. It means about 54.68% of the total
population has had access to the internet.
Moreover, citing data from Hootsuite,
active users of mobile devices in January 2018 were recorded in an even greater
number, 177.9 million. This figure was 1% higher than in the same month of the
previous year.
Considering the potential, it
is not an exaggeration to say that Indonesia is one of the most promising
e-commerce markets in Asia. It is no surprise that a Chinese e-commerce giant
was willing to invest in a certain Indonesian marketplace.
E-commerce players then hope
to gain profits from the mouth-watering transaction values. Bank Indonesia
recorded e-commerce transactions of Rp69.8 trillion in Indonesia in 2016.
Previously in 2014, the
e-commerce sector booked Rp25
trillion in transactions. Calculating based on this increase, Bank Indonesia
predicted that this year’s e-commerce transactions may hit Rp144 trillion.
New formula
Apparently, all the records
have prompted the Finance Ministry to formulate a tax for e-commerce. Several
related ministries have reportedly met to discuss the required aspects.
“Deliberation with several related
ministries and institutions was carried out to know other views and
considerations that are related to or influential to e-commerce activities,”
Finance Minister Sri Mulyani Indrawati said, as quoted by Kompas.com (January 19).
Currently, the Finance
Ministry is deliberating the tax rulesfor e-commerce players, the majority of
which are Small and Medium Enterprises (SMEs).
“Basically, we’re leveling the
playing field. It means that e-commerceand retailers have the same taxes,”
Minister Ani says.
The main point of the
deliberation is like a blow of fresh air to SME players. The finance minister
revealed the plan to slash income tax, which currently stands at 1%, to only
0.5%.
“Probably the minimum
threshold will also be lowered,” she added.
If the plan is realized, it
will hopefully create an ecosystem that supports the growth of Indonesian
e-commerce. Easy digital access is also an important factor for the people’s
digital literacy.
The potential, backed by the
government’s upcoming policy, will certainly stimulate e-commerce players to
develop their business. Moreover, excellent logistics service will also support
e-commerce.
E-commerce needs logistics
service to ensure that the goods purchased can reach the correct buyer. Thus, a
professional service like SELOG, a subsidiary of PT Serasi Autoraya (SERA)
under Astra, offers the best logistics service.
SELOG guarantees safe and
on-time service which ensures that goods will reach customers undamaged.
Businessplayers can
also use SELOG’s Warehouse Management System to continuously track packages
from order acceptance, package pick-up, shipment, until order completion.
It is expected that an
ecosystem that supports digital business can awaken the entrepreneur spirit of
Indonesians. In turn, it will hopefully boost Indonesia’s economy to raise the
life quality of the people.
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