Jakarta, Monday, April 14, 2016. In response to the Government's plan to impose a tax on some models just- Just e-commerce business, William Tanuwijaya Tokopedia founder who is also one of the Supervisory Board of E-Commerce Association of Indonesia (IDEA) - explains Tokopedia as Indonesian companies already and will always comply with the regulations applicable taxes.

During this time as one of the pioneers in the e-commerce industry that is growing, Tokopedia and other industry players actually never asked for their tax incentives.

"We hope that if there is a new tax rule, the rule is not to kill certain business models are very dynamic in the Internet industry, providing innovation space for local players to enable them to compete in the era of the borderless and global internet. With the hope of the future, Indonesia is not only a country market but were able to take a role in the potential of the digital economy that is targeted by the government in 2020. "said William.

Regarding the discourse tax free of charge, for example, during this time of Indonesian society has been educated that the Internet is something that is free, from finding information through search engines such as Google, downloading and playing games on Android, iOS, read news on various news sites, communicate in various chat platform, to do product listing or buying and selling on social media.

"Certainly if the local players want to compete with the global players, they also must be able to offer products that are perceived by internet users Indonesia and find other business models to survive. For example, by providing a premium listing (paid ads) or a premium subscription option to users in addition to the free listing. "More William

Paid options that is the income from the platform. Later, as a tax-abiding company, all such income shall, has been, and will continue to pay the tax by the platform such as the classifieds or marketplace. If a free ad will be taxed, then there is no room for local players in order to grow and compete in the era of the borderless internet and had to compete with global players since the first day local service launched.

The only industry players expect the level playing field, the expected tax rules that applied not kill the business model that has been built for years with no small amount of capital. During this time players in the industry have been shoulder to shoulder to build the industry through the efforts of each and managed to absorb millions of new jobs indirectly, through the growth of the courier industry, logistics, and domestic production.

"E-Commerce Association of Indonesia demanded that the plan imposition of VAT free of charge is canceled. If this is adopted, it will kill the creativity of the new players, which notabena obliged to impose a charge to all forms of service since the first day of operation. Countries - other countries that have already developed e-commerce are still cautious in enacting the tax rules, so that the industry can continue to grow and the benefits can be enjoyed by all parties, "added Daniel Tumiwa as Chairman of E-Commerce Association of Indonesia.


about IDEA
E-commerce Association of Indonesia which was formed in May 2012 an institution for the e-commerce pemainindustri this country to interact with fellow players and also the government. Currently a member of the association includes more than 180 players from online retail category, market place, daily deals, classified ad, price comparison, travel, payment systems, logistics, and several related strategic partner. IDEA has a vision of making Indonesia as a state-based digital economy through a partnership with the partners in the country that can contribute to realizing the growth of e-commerce Indonesia, while continuing to hold a program of education and socialization about this industry.


For further information, please contact:
AyuIndirawanty
Secretary General Idea
+62 21 2550 2625
ayu@idea.or.id