Indonesia Weak Against Global Content Aggressiveness

Ilustrasi (dok)

JAKARTA (IndoTelko) - The government of Indonesia is considered weak against the aggressiveness of global content into the country's digital market which shown by not applying the regulations that indicates the country's sovereignty.

"Our government can not pursue taxes from global content such as Facebook or Google. Just compare their treatment to content providers, we are subject to a number of regulations and taxes. How would we compete if it is unfair," said Chairman of the Indonesia Mobile and Content Providers Association (IMOCA) Evi Puspa in a discussion entitled Internet Sovereignty, Local Content vs Foreign Content, recently.

Evi said that currently local content providers are taxed in the form of VAT, PPH, to telecommunications BHP and USO that are relatively big. Meanwhile, the foreign content and applications are hardly worn at all.

"Local content providers can be shut down and immediately put the application on the foreign virtual store. State can not do anything," she said.

Loose a lot
Association of Indonesian Internet Service Provider (APJII) Head of Organization department Handoyo Taher revealed said that Indonesia had "lost a lot" in facing the global contents aggressiveness that is fully absorbing the country's digital economy.

"We provide potential revenue to foreign content players amounting to Rp 15 trillion/year, not to mention US $ 218 million dollars/year for internet access. And the tax issue that is not quoted. We are loosing a lot here," he said.

Previously, researchers from the Society Initiative (The Center for Welfare Studies) AH Maftuchan disclosed that tax potential of eCommerce can reach up to Rp 10 trillion to Rp 15 trillion.

The Government considered to be less keen to see the activity of social networks like Facebook, Twitter and online shops that utilize social media to transact. One example is the advertising sense system in sites that could bring in billions of rupiah turnover.(es)