Welcoming The Tax Imposition Plan At Social E-commerce, This Is What TikTok Indonesia Says

JAKARTA - The Indonesian government plans to impose taxes when shopping at social commerce. This follows a revision of Permendag Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Development, and Supervision of Business Actors in Trade Through Electronic Systems which will load shopping transactions through social commerce, such as TikTok will be subject to taxes.

Responding to this, TikTok Indonesia welcomed the plan launched by the government.

"We support the revision well. So, when this has been ratified, we are also ready to obey and comply with all the regulations," said TikTok Indonesia Head of Communications Anggini Setiawan at a press conference in Jakarta, Wednesday, July 26.

Anggini said that his party would fully support the revision of the Permendag.

"We believe the government's enthusiasm here is to provide a shared opportunity for all platforms to innovate and also choose the market," he said.

On the same occasion, Digital Economy Researcher INDEF Nailul Huda said, with the policy of imposing the tax, it could later reduce the number of local sellers selling imported products in Indonesia.

He even suggested that the regulation of the Minister of Trade also contains affirmations from the government to impose other additional costs for local sellers selling imported goods.

"In the regulation, it is also emphasized that if he is a seller of imported goods, other additional costs are imposed because it can be the origin of incentives for local sellers who sell local products and may compete a little," said Huda.

For your information, the Minister of Trade (Mendag) Zulkifli Hasan said that the revision of Permendag Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems will soon be promulgated.

This is because the regulation has been discussed between institutions and the Ministry. According to the plan, the revision of the Permendag will be harmonized at the Ministry of Law and Human Rights (Kemenkumham), on August 1.