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Netflix raises subscription prices for Indonesians

News Desk

The Jakarta Post

Jakarta  /  Sat, August 1, 2020  /  02:08 pm
Netflix raises subscription prices for Indonesians

A computer screen and mobile phone display the Netflix logo on March 31 in Arlington, Virginia, the United States. (AFP/Olivier Douliery)

Streaming service giant Netflix officially announced its new monthly subscription pricing for Indonesian users on Saturday, in accordance with the government's new value-added tax (VAT) rules.

As shared on its website, Netflix's cheapest subscription plan, called the Mobile package, which previously cost Rp 49,000 (US$3.35), is now priced at Rp 54,000. Meanwhile, its Basic, Standard and Premium packages now cost Rp 120,000, Rp 153,000 and Rp 186,000, respectively. 

"As reported, the Indonesian government has introduced VAT on digital services, including Netflix, from Aug. 1. New members will see prices with this VAT reflected today, and we have started notifying our members that we will adjust our prices accordingly," read a statement received by The Jakarta Post.

For existing members, the new prices will apply in September and notifications will be sent over the next 30 days based on their billing date. 

Under Finance Ministerial Regulation No. 48 as stipulated in July, nonresident foreign firms that sell digital products and services in Indonesia worth at least Rp 600 million a year or generate yearly traffic from at least 12,000 users will be required to pay a 10 percent VAT.

In addition to Netflix, the VAT applies to tech firms such as Amazon Web Services, music streaming service Spotify and Alphabet’s Google for its Google Asia Pacific, Google Ireland and Google LLC units. (kes) 

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Editor's note:

Paragraph three in this article has been revised.

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