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Finance Minister Sri Mulyani: Amazon Plans to Enter Indonesia

On discussion with Financial Ministry

Yenny Yusra - 19 September 2018

US's largest e-commerce, Amazon, is ready for the second expansion in Southeast Asia. After Singapore, Indonesia became the next destination of a company founded by the richest man alive today, Jeff Bezos. Before its official launching, the Indonesian government through the Financial Ministry is try to ensure that Amazon is aware and following the tax regulation in Indonesia.

"I am on a discussion with Amazon and its plan to penetrate the country. I need to make sure they have met the regulation in Indonesia, particularly in terms of readiness for taxes," Sri Mulyani, Finance Minister said as quoted from Katadata.

The tax issue has been the focus of Financial Ministry. Previously, through the Directorate General of Taxes, the Financial Ministry chased down taxes of some global companies, such as Google and Facebook.

Since 2016

In Singapore, Amazon has been available and offered its regular e-commerce shipping services, Amazon Prime, and Amazon Prime Now. The idea for expansion to Indonesia has been rumored since 2016.

It was claimed then, Amazon's seed capital for SEA expansion worth $2 billion, with $600 million to be focused on penetrating the Indonesian market, for at least one year.

A service from Amazon that has introduced in Indonesia is the Amazon Prime Video for streaming. Another service is the International Shopping supported by 25 world currencies, including Rupiah, for prospective buyers in Indonesia to easily use local currency and make payments using debit or credit card.

Previously, the Chinese giant had first set foot in the Indonesian market. Alibaba Group penetrates through Lazada's acquisition and investment to Tokopedia, while Tencent Group with JD.id and Shopee.

Original article is in Indonesian, translated by Kristin Siagian

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