FI­NANCE MIN­ISTRY TO IS­SUE E-COM­MERCE TAX REG­U­LA­TION NEXT WEEK

Indonesia Expat - - Business Profile -

The Di­rec­tor General of Tax­a­tion Ken Dwi­ju­giaseteadi re­cently an­nounced that the gov­ern­ment will soon is­sue a min­is­te­rial reg­u­la­tion on the tax­a­tion of elec­tronic com­merce busi­ness. “Hope­fully, [the reg­u­la­tion] will be is­sued next week,” he said.

Fi­nance Min­is­ter Sri Mulyani be­lieves that the new reg­u­la­tion would in­clude taxes on e- com­merce trans­ac­tions, among other as­pects. Ac­cord­ing to the min­is­ter, the gov­ern­ment would an­nounce the reg­u­la­tion to the pub­lic soon after it is is­sued.

The new reg­u­la­tion is im­por­tant for the coun­try to keep up with the rapid changes in its busi­ness and econ­omy sec­tors.

The Ex­ec­u­tive Di­rec­tor for In­done­sia Tax­a­tion Anal­y­sis Yusti­nus Pras­towo re­vealed that the gov­ern­ment needs to be ready for more changes in the e- com­merce, es­pe­cially when it comes to the emer­gence of so­cial me­dia. He ad­vises the gov­ern­ment to come up with a clear and comprehensive reg­u­la­tions that are able to sup­port such a change. Jakarta’s traffic con­ges­tion gas cost the coun­try as many as US$5 bil­lion an­nu­ally, ac­cord­ing to Na­tional De­vel­op­ment Plan­ning Min­is­ter and Na­tional De­vel­op­ment Plan­ning Board

(Bap­pe­nas) Bam­bang Brod­jone­goro.

The min­is­ter also ex­plained that lim­ited road­way ca­pac­ity could not keep up with the in­creas­ing num­ber of ve­hi­cles in, caus­ing the cap­i­tal city to suf­fer from a ma­jor traffic con­ges­tion. The slow progress on the pub­lic trans­porta­tion in­fras­truc­ture, in­clud­ing the MRT and LRT, are also re­spon­si­ble for this is­sue.

“We are 30 years late in build­ing the MRT. We con­sid­ered the project un­fea­si­ble fi­nan­cially, be­cause we only thought about value and in­vest­ment and rev­enues from the project,” the head of Bap­pe­nas said as re­ported by The Jakarta Post.

The first stage of the MRT project is cur­rently still way un­der­way, from Le­bak Bu­lus, South Jakarta, to the traffic cir­cle in Ho­tel In­done­sia, Cen­tral Jakarta. After­wards, the project will ex­tend this route to Kam­pung Ban­dan in North Jakarta.

The MRT project is sched­uled to fin­ish in 2019. Brod­jone­goro thinks that the gov­ern­ment needs to care­fully con­sider the po­ten­tial out­come of this project. The coun­try should think about the dam­age brought by traffic jams to the peo­ple, par­tic­u­larly when it comes to longer travel hours and more fuel pur­chase.

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