Bappenas pushes for optimisation of taxation schemes for OTT platforms

The Ministry of National Development Planning/National Development Planning Agency (Bappenas) is encouraging policies to optimise state revenue through an equitable taxation scheme for digital platforms, including over-the-top (OTT) streaming services in Indonesia.

Rolly Rochmad Purnomo, Secretary of the Deputy for Economy and Digital Transformation at Bappenas, stated in Jakarta on Tuesday that this move follows the observation that most OTT platforms are large global technology companies. He noted that the investment in digital connectivity required to provide these services is largely borne by national corporations.

“Furthermore, regarding fiscal policy, global OTT platforms can operate without requiring a physical presence in Indonesia. This has become a loophole that allows OTT platforms to often bypass the existing taxation framework,” said Rly.

He added that this issue needs urgent resolution through policies that optimise state revenue by encouraging the development of fair taxation schemes, including Value Added Tax (VAT) and options for Corporate Income Tax.

“This is to ensure equal opportunities for all global and national industry players, proportional contributions to the state, and the creation of healthy business competition,” Rolly stated.

Furthermore, Rolly assessed that reinvestment into the ecosystem and infrastructure is also essential. This step would ensure that tax revenues and the fair share contributions from OTT platforms are allocated proportionally to the development of the digital content and media ecosystem, as well as the construction of domestic digital infrastructure.