Indonesia Digest: MNC in JV with iQIYI; Bukalapak’s new online tax payment service

Photo by MNC Group

Indonesian media company Media Nusantara Citra or MNC has set up a joint venture with China’s iQIYI while Bukalapak has launched an online tax payment service.

MNC sets up JV with iQIYI

Media Nusantara Citra, MNC Indonesia’s integrated media company, has set up a joint venture with Chinese over-the-top platform player iQIYI. The JV will operate the OTT service platform in Indonesia.

MNC will own 51 per cent stake in the JV, which seeks to produce original content. The JV targets to start operations in the fourth quarter this year. The platform offers a freemium model and will implement an ad-supported video on demand (AVOD) and subscription video on demand (SVOD) to capture the fast-growing digital ad spend and online subscription in the country.

MNC also produces video content and owns the video library in Indonesia. iQIYI, which is part of internet search engine giant Baidu, will support the JV through its technology while MNC will be responsible for marketing and promotion as well as regulatory affairs.

According to a study conducted by Media Partners Asia (MPA), Asia’s online video business is projected to reach $52 billion by 2024 from the current $26 billion in 2019. The study said that Indonesia is among the countries with the highest growth for both the AVOD and SVOD business models.

Bukalapak launches online tax payment service

Indonesia’s e-commerce firm Bukalapak on Friday announced that it has launched an online tax payment service, which will enable Indonesians to pay their state taxes through an online platform. 

The newly-launched product, Penerimaan Negara or State Revenue, will allow taxpayers to pay all types of taxes, including income tax, value-added tax, and luxury sales tax, directly within the Bukalapak platform.

Bukalapak said, in a statement, that the new service is a major milestone between the technology company and government agencies to support the country’s e-government ambition. The product is also the outcome of a partnership between Bukalapak and the Directorate General of Treasury.

Bukalapak has also partnered with several regional governments, and cities to support the payment service of the regional property taxes. The startup also collaborates with the Indonesian Provincial Government Association (APPSI) and Association of Indonesian Regent Governments (APKASI) to help 20 regencies across Indonesia jump on the technology bandwagon.

Bukalapak has over 70 million users, 4 million MSMEs, and 2 million mom-and-pop kiosks partners and individual agents on its platform.