JAKARTA - Netflix has been present in Indonesia since January 2016. During that time, the video on demand service Netflix has paid taxes. Because there is no legal umbrella to collect taxes from over the top (OTT) companies operating overseas, such as Netflix or Spotify.
Therefore, the government was asked to immediately classify the form of Netflix's business. DPR Commission I member Bobby Rizaldi said that currently the most important thing is to classify what Netflix is.
The goal, he said, was to make it easier to regulate the regulations. According to Bobby, this is based on differences in defining Netflix from several ministries.
"The government needs to be firm in defining what kind of service like Netflix used to be. In what form. We are proposing a digital service and media subscription base," said Bobby, at a discussion held in Cikini, Central Jakarta, Thursday, January 16.
Because, according to Bobby, if the definition and classification of the Netflix business form has been determined, the next steps can also be taken. In this case, he said, mapping the gaps in the legal loophole.
"From there there can be mapped the legal loopholes. It is the legal loopholes that must be closed immediately, whatever the means. Whether tactically, whether through a Presidential Decree, or whether a law is made, it seems that it is technical. "he explained.
To determine Netflix's classification, said Bobby, the government must look at the elements of streaming and telecommunications in it. According to him, Netflix as a video streaming service consists of these two elements. This is to make it easier to set regulations regarding these services.
"There needs to be a movement that is quite dynamic and active, ensuring this classification is the element of broadcasting in the package of telecommunications. So that the two laws that exist have clear legal basis," he explained.
Regarding taxation, said Bobby, it must also be formulated because a number of other OTT services in Indonesia have not yet become a Permanent Business Entity (BUT). Including, in this case Nerflix.
"Right now we are still wondering, he said violated? If it violates how come law enforcers cannot immediately take it? They say that it violates the content, why not take it down immediately? This means that the basis for enforcing the punishment alone still has to be emphasized," he said.
Because according to him, if you want to tax Netflix's BUT, there is no BUT yet. His party wants the government to find the formula for taxing Netflix as soon as possible.
"Because now we want to tax, we are also confused about the legal basis. What do we want to follow, the tax is based on the Telecommunication Law or the Broadcasting Law. This is still confused," he explained.
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