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Jakarta Post

E-commerce and cross-border tax avoidance

  • Hendri

    -

Jakarta   /   Mon, February 4, 2019   /  12:08 pm
E-commerce and cross-border tax avoidance Ecommerce platform Amazon (Shutterstock/File)

In Indonesia, there is an enormous potential for growth in the e-commerce sector. According to the Indonesian Internet Service Providers Association (APJII), the number of internet users in 2017 totaled 143.26 million, about a half of which (49.52 percent) were in the productive age (19 to 34 years old). 

Global management consulting firm Bain & Company has reported a similar finding, revealing a 74 percent increase in digital consumers between 2016 and 2017. In its report, the company stated that Indonesia had 83 million digital consumers, making it the highest number of digital consumers among all Southeast Asian countries.

The findings certainly encourage market players to develop the e-commerce sector, despite that in 2016 e-commerce only contributed 0.71 percent to Indonesia’s gross domestic product. 

A survey conducte...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.