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Jakarta Post

How Netflix went from foe to friend in Indonesia

  • Eisya A. Eloksari


Jakarta   /   Sat, August 8 2020   /  01:00 am
In this photo illustration a computer screen and mobile phone display the Netflix logo on March 31, 2020 in Arlington, Virginia.(AFP/Olivier Douliery)

United States-based streaming platform Netflix is one of the most recent tech giants to have become subject to taxes in Indonesia, as its popularity increases during the pandemic and the government hunts for untapped sources of revenue.   While the streaming service has not disclosed its Indonesian subscription numbers, the company has met a threshold for taxation stipulated by a Finance Ministerial Regulation. The regulation holds that nonresident foreign firms selling digital products and services in Indonesia worth more than Rp 600 million (US$41,345) a year or generating yearly traffic of more than 12,000 users are subject to a 10 percent value-added tax (VAT).   According to Netflix’s second-quarter report, the company has 193 million paid memberships worldwide, having grown by 10.1 million from the same period last year as a greater number of people seek...