INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Mahiswara Timur, Nina Cornelia Santoso and Natasya Nurul Amalia, ABNR Counsellors at Law
independent surveyor in the merchant’s country of origin. MR 31 tries to capture platforms that provide both social media and e-commerce within the same application by introducing the term “social commerce”, which is defined as a “social media operator that provides certain features, menus or facilities that enable merchants to offer goods or services”. Social commerce platforms are also prohibited from acting as a manufacturer and facilitating payment transactions. MR 31 also provides for specific business mod - els that are subject to the e-commerce regula - tions ‒ namely online retail, online marketplaces, online classified advertising, price comparison The payment system industry is also a major contributor to the growth of Indonesia’s digital economy. However, this industry is considered a highly regulated sector under the authority of Indonesia’s central bank, Bank Indonesia (BI). The two regulatory frameworks regulating pay - ment services activities are BI Regulation No 22/23/PBI/2020 on Payment Systems and BI Regulation No 23/6/PBI/2021 on Payment Ser - vice Providers (PBI 23). Under PBI 23, the main activities of payment ser - vice providers (PSPs) include account issuance services, account information services, payment initiation and/or acquiring services and money remittance services. PSPs may be required to obtain different licences depending on the types of business activities they provide, which are categorised into three types under PBI 23: • category 1 ‒ account issuance services, account information services, payment initia - platforms and daily deals. Payment Service Providers
tion and/or acquiring services and money remittance services (eg, issuer); • category 2 – account information services and payment initiation and/or acquiring ser - vices (eg, acquirer, payment gateway pro - vider, e-wallet provider); and • category 3 ‒ money remittance services and/ or other services determined by BI. The categorisation is designated to compart - mentalise various types of payments services, according to their degree of involvement in pay - ment processing and attributed risks. A busi - ness model with inherently greater risk would be subject to higher scrutiny and licensing require - ments. The ever-evolving digital payment ecosystem poses a practical challenge. Business under - takings often find it quite difficult to determine the appropriate licences under PBI 23 for their business models. 1.2 Digital Economy Taxation Digital services and goods in Indonesia are sub - ject to Ministry of Finance Regulation No 81 of 2024 on the Tax Provisions in the Framework of Implementing the Core Tax Administration Sys - tem (MOFR 81). Any utilisation of foreign digital goods and digital services within the territory of Indonesia via e-commerce shall be subjected to value added tax (VAT). The VAT rate is 11% per transaction and is imposed on foreign mer - chants and/or foreign service providers. As per 1 January 2024, delivered or imported luxury goods (which are subject to the Sales Tax on Luxury Goods) are subject to VAT of 12% of the selling price or import price. Digital goods and services covered under MOFR 81 include the following.
148 CHAMBERS.COM
Powered by FlippingBook