AIC Submits Comments on Indonesia E-Commerce tax Regulation No. 210/PMK.010/2018

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Asia Internet Coalition (AIC) has submitted inputs on regulatory developments in Indonesia’s e-commerce sector, particularly on regulation No. 210/PMK.010/2018 regarding the Tax Treatment of E-Commerce (“MOF Regulation210”). We commend the government on formulating the regulation, with an aim to stimulate the e-commerce sector in the country. These efforts and direction are critical, particularly at a time when cross-bordertrade and data flows has taken a centre stage in Indonesia’s digital economy development. However, MOF Regulation 210 may be one way to increase revenues in the short term, we believe that having a short sighted tax structure can potentially harm e-commerce and SMEs in the long run. Considerably, the potential impact of regulation on e-commerce raises significant concerns.