Indonesia withdraws e-commerce data sharing regulation

Employees walk down the corridor at the Tokopedia headquarters. Photo: Bloomberg

Indonesia retracted its new rules requiring e-commerce sellers to share data with tax authorities to avoid further confusion, the country’s finance minister said on Friday.

“We are pulling it back because there is too much noise, while there is not even a new tax,” Finance Minister Sri Mulyani Indrawati told reporters.

The rules initially stated that all operators of online marketplaces, including Tokopedia and Bukalapak, will have to detail each seller’s turnover and share data with authorities.

There were no new taxes being applied, but the rules were put in place to clarify what taxes each player in a marketplace is obliged to pay and to “create an equal treatment with conventional businesses,” the tax department has said when the rules was announced in January.

Surging smartphone use and a rising middle-class income in Indonesia, home to 260 million people, have made the e-commerce industry a battleground for foreign investors.

Sellers at online marketplaces are still required to pay the same taxes as conventional ones, for example, the 0.5 percent income tax for small- or medium-sized business or a 25 percent corporate tax of profit in case of large enterprises.

The department had previously also stated that an online seller that makes at least 4.8 billion rupiah ($339,943) in turnover must charge value added tax to customers and pay this to the authorities.

Also read:

With latest e-commerce tax, Indonesia wants to cash in on its unicorns

Indonesia to introduce new rules for e-commerce to raise tax collection

Reuters

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.