Tax & Business
From The Report: Indonesia 2020
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The Indonesian government set a tax revenue target of Rp1786trn ($125.9bn) for the year and had successfully collected 86.5% of that figure by the end of December 2019. In 2020 the target was raised to Rp1861.7trn ($131.2bn). This chapter offers an overview of Indonesia’s tax system, including the proposed omnibus laws, international taxation, zero-rated services, tax concessions and the luxury good sales tax, as well as outlines the online single submission system for the electronic processing of tax allowance applications and analyses regulatory efforts to boost the digital ecosystem. This chapter contains a viewpoint from Subianto, Partner and Digital Services Co-Leader, PwC Indonesia.

Articles from this Chapter

Overview

Positive steps: Recent reforms seek to simplify the tax-paying process and make the country a more attractive destination for investment
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In 2019 Indonesia recorded an economic growth rate of 5.3%. From an output perspective, the agriculture, forestry and fisheries sectors, as well as trading and construction, significantly contributed to the country’s GDP. In terms of tax intake, the government set a revenue target of Rp1786trn ($125.9bn) for the year and had successfully collected 86.5% of that figure by the end of December 2019. In 2020 the tax revenue target was raised to Rp1861.7trn ($131.2bn). In recent years, the…

Viewpoint

Nurturing talent: Subianto, Partner and Digital Services Co-Leader, PwC Indonesia, on using digital technology to equip students with necessary skills
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Viewpoint:Subianto Indonesia has a young and vibrant population that is also tech savvy, energetic and full of new business ideas. Indonesia has become well known in South-east Asia for the frequency at which we produce new tech unicorns – start-ups valued at $1bn and above – and other dynamic business enterprises. Indeed, an Indonesian company became the region’s second decacorn, crossing the $10bn valuation threshold in April 2019. In Indonesia we have created an environment that enables…

Analysis

Supportive framework: The government and regulators are taking steps to develop the digital economy, with a focus on local tech start-ups
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Indonesia is the largest economy in South-east Asia, the world’s fourth-most-populous nation, the 10th-largest economy in terms of purchasing power parity and a member of the G20. PwC’s “World in 2050” report predicted that, by 2050, Indonesia will be the fourth-largest economy in the world. However, President Joko Widodo, commonly known as President Jokowi, believes that Indonesia could reach this position even earlier, by 2045. In the first five years of President Jokowi’s administration,…