Indonesia plans to tax online retailers

Tuesday 18 March 2014 11:45 CET | News

The Indonesian government has revealed plans to begin collecting tax on sales conducted over the internet, online media reports.

According to the source, the plans has been formulated since July 2013. The government would soon require all online retailers, selling through websites or social media platforms, to provide personal and business details for tax and dispute settlement purposes.

As reported by the Association of Indonesian Internet Providers (APJII), the number of internet users in the country will double from the current 80 million to about 160 million people by 2017.

Meanwhile, Indonesian ecommerce transactions are expected to see an annual growth of 40.2% to USD 650 million from 2010 to 2015, according to a report by consulting company Frost and Sullivan.

Data from another survey released in 2013 by Southeast Asian research company MarkPlus Insight, one out of every five Indonesians shopped online in 2013, an increase from 15% in 2012.

Of the total online buyers, 27% shopped via Blackberry Messenger (BBM), 26% on Facebook, 20% on online stores and the remainder on online forums or brokers.

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Keywords: Indonesia, online, retailers, ecommerce, tax
Categories: Payments & Commerce
Countries: World
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