Indonesia’s Unicorn Charge Has the Rupiah Trembling: Shuli Ren

Indonesia’s booming e-commerce industry is churning out unicorns such as Tokopedia PT and Bukalapak.com. It’s also creating a headache for the government and the rupiah.

Authorities are trying to capitalize on this fast-growing cash cow by taxing e-commerce transactions. Starting April, online retailers will need to collect, deposit and report income and value-added taxes. Small and medium-size businesses must pay income tax of 0.5 percent of revenue, while large enterprises will be subject to a 25 percent levy on profits.

The government of Joko Widodo may feel it’s entitled to reap some benefit from an internet economy that CLSA Ltd. ...