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The difference is on the tax collection procedure because not all of the Permanent Business Entity (BUT) involved in digital economic activities have representatives in Indonesia., Jakarta – Indonesian Fintech Association (Aftech) expressed the hope that the digital economic tax plan proposed by the government can be made in a consultative way and transparently.

“We expect that all policies related to digital economy tax proposed by the government can be made transparent and after consultations with the private sector,” Aftech Daily Chair, Mercy Simorangkir said to here Tuesday (9/7/2019).

By consulting with the private sector in advance, the plan to implement the policy of digital economy tax would not hinder the growth of the digital economy in the country, Simorangkir argued.

“Therefore, the effort to impose taxes on digital businesses will not be a barrier to the growth of the digital economy in Indonesia,” he remarked.

Nevertheless, Aftech will support the government’s plan, he stated.

“The Indonesian Fintech Association strongly supports the government’s efforts to formalize business models and innovations that have emerged in the digital economy,” he added.

Earlier, Minister of Finance Sri Mulyani called for a plan to collect taxes from digital economic activities which had not been optimally done to increase state revenues.

This effort must be conducted because every economic activity in Indonesia must be taxed in accordance with the applicable laws and regulations, Sri Mulyani stressed.

The imposition of income tax rates from each the digital economic transaction will remain the same as conventional buying and selling activities, she assured.

The difference is on the tax collection procedure because not all of the Permanent Business Entity (BUT) involved in digital economic activities have representatives in Indonesia.

One approach to the tax collection sought is taxation obligations based on the number of economic transactions or the volume of economic activity obtained in one country.

This tax collection plan can be done in a transparent manner from sales information, advertisements, and other data, as well as being able to be integrated. (ant)

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Indonesia and Saudi Arabia have the potential to establish cooperation in Umrah (minor Hajj) Digital Enterprise, as many Indonesian Muslims are eager to go to Saudi for Umrah., Jakarta – Indonesia and Saudi Arabia have signed a Memorandum of Understanding (MoU) on cooperation in digital economy. The MoU was signed by Indonesian Communication and Informatics Minister Rudiantara and Saudi Minister of Communication and Information Technology Abdullah Alswaha in Riyadh.

“We are committed to making this cooperation not just an MoU or a Memorandum of Understanding, but MoA, notably a Memorandum of Action,” Rudiantara said in a press statement Thursday ( 4/7/2019).

In the digital economy field, Indonesia and Saudi Arabia have the potential to establish cooperation in Umrah (minor Hajj) Digital Enterprise, as many Indonesian Muslims are eager to go to Saudi for Umrah.

Umrah Digital Enterprise, it is believed, will be able to address problems concerning the Umrah departure process.

The Communication and Informatics Ministry will invite two Indonesian unicorns – Tokopedia and Traveloka, to run the Umrah Digital Enterprise.

“We are proud to present the two Indonesian unicorns – Tokopedia and Traveloka. I believe, this is a beginning of our collaboration in the digital economy to support the 2030 Vision of Saudi Arabia, and the vision of Indonesia, which is the largest digital economy in ASEAN,” he said.

Saudi Minister Alswaha lauded the cooperation with Indonesia.

“I believe that this partnership is very unique and special. We establish collaboration with the country having the largest Muslim population in the world. I am sure we could do more extraordinary things,” he said. (nat)

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The ministry's Informatics Application Director General, Samuel Abrijani Pangerapan., Jakarta – The Communications and Information Ministry is targeting eight million micro, small and medium enterprises (MSMEs) to be partners of the Go Online program. Involving MSMEs and marketplace in the country, Go Online is a collaborative program between the government, MSMEs, and online shopping platforms to level digital market access and build a digital economy in Indonesia.

“Through this program, we are targeting eight million MSMEs to build a digital economy by partnering with marketplace platforms,” the ministry’s Informatics Application Director General, Samuel Abrijani Pangerapan said in Jakarta Monday (1/7/2019).

The method of marketing local products through the online needs to be informed widely, given that Indonesia has as many as 53 million MSMEs, Samuel continued.

In addition to introducing digitalization, Samuel assessed that the presence of new marketing media could improve the sale of local products by MSMEs which joined the program.

“Not only by introducing them (MSMEs) with new marketing channels but how these local products can be increased in sales and be improved in trend,” he noted.

In line with Samuel, Director of online marketplace Shopee Indonesia, Handhika Jahja welcomed the proposal of cooperation from the MSMEs under the Go Online program.

Shopee Indonesia has signed a cooperation agreement with the Communications and Information Ministry to support the program, following the other online platforms which have joined such as Tokopedia, BukaLapak, and

Samuel is optimistic that the growth of the digital economy in Indonesia can develop in a better direction.

“The development of e-commerce in Indonesia has a lot of potential. I believe digital economic growth can be maximized with resources that continue to adapt to current global trends,” Handhika said.

The presence of a number of online shopping platforms in Indonesia have served to monitor new trends and provide advice for MSMEs to follow these trends, he added. (mhs)

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Communications and Information Ministry's Postal and Information Technology Resources Director General, Ismail., Tangerang – The government will not rush to establish the fifth generation of internet network frequency (5G) in Indonesia, according to Communications and Information Ministry’s Postal and Information Technology Resources Director General Ismail.

“We will do this only at the right time,” Ismail said after the opening of the 25th Meeting of the Asia Pacific Telecomunity (APT) Wireless Group at Indonesia Convention Exhibition (ICE) of Bumi Serpong Damai (BSD), Banten, Monday (1/7/2019).

The progress of the 5G network establishment is not too fast because the technology is still in the development stage, according to him.

“But we also will not take too long (to establish) so Indonesia will not be left behind by other countries in its implementation,” Ismail pointed out.

The government will be, at least, setting up a 5G network after the World Radio Communication Conference (WRC) scheduled to take place in Egypt in October 2019.

Also this year, the government together with a number of communities, including operator companies will hold a special working group to prepare for this 5G network service.

“The working group includes discussions on the economic aspects in implementing the 5G network,” Ismail said.

Such a discussion is important to find the best business model that can be used by operators in serving the community with this 5G technology.

Ismail also emphasized that Indonesia will choose the 5G ecosystem, compared to the 3.5G ecosystem which is developing the world today.

“By choosing this 5G ecosystem, the investment costs of operators for the development of 5G services will be more efficient,” Ismail said in conclusion. (kap)

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