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Hipmi: E-Commerce Taxes Should Encourage Enhancement of Local Entrepreneurs

Illustration. (http://www.nationmultimedia.com)

Illustration. (http://www.nationmultimedia.com)

Thejakartatimes – Indonesia is the largest e-commerce market in Southeast Asia. But unfortunately the market is more exploited by foreign e-commerce actors. Therefore, Hipmi Tax Center requested that the e-commerce tax rules being stimulated by the government could encourage the role of local entrepreneurs or investors.

“We expect the alignment to entrepreneurs or investors starting from taxation,” said Chairman Hipmi Tax Center Ajib Hamdani in Jakarta today. Ajib said the tax instrument is an effective starting point to maintain the country’s economic sovereignty in the e-commerce industry.

As known to the Ministry of Finance (Kemenkeu) is brewing the rules of online business tax or e-commerce. Later, e-commerce actors will be required to deposit Value Added Tax (VAT) and Income Tax (PPh). The rules will be contained in the Government Regulation (PP). The government will also work with the marketplace in tax deposits. The marketplace will act as a tax e-commerce actors.

Ajib said it supports the implementation of taxes for e-commerce because slowly the pattern of public spending increasingly shifted online applications. However, he hopes the e-commerce tax system is designed in such a way as to encourage ownership of entrepreneurs or domestic investors.

Ajib said Indonesia’s market potential in 2017 in the range of US $ 32.5 billion. This figure grew about 30 percent-40 percent of the estimated transactions in 2016 worth US $ 25 billion. With this value, Indonesia became the largest e-commerce market in Southeast Asia. As much as 50 percent of expenditures and investments in Southeast Asia are in Indonesia at US $ 9 billion. “The Indonesian e-commerce market is estimated to reach US $ 130 billion by 2020,” said Ajib.

While e-commerce transactions Indonesia grew by 30-50 percent in 2017 from 2014. Unfortunately, the potential is relatively threatened entirely foreign control.Ajib said with a very rapid Internet penetration, the growth of massive smartphone users, as well as the largest population in Southeast Asia, Indonesia becomes the target of outsiders “In terms of regulation in e-commerce we are very liberal, protection and alignment to local actors or investors is still weak,” said Ajib.

He said, in terms of supply to the e-commerce industry has been controlled by the outside because the industry in the country weakened. However, on the demand side, do not let this big market also be controlled by foreigners. “Therefore, we encourage starting from the taxation system can be a driver for local e-commerce to strengthen,” he said.

As is known, the previous government has opened 100% foreign investment taps in the business of electronic commerce transactions alias e-commerce worth Rp100 billion and above. The easing is part of the Economic Policy Package Volume X. (Thejakartatimes/EOS)

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