Minister of Finance Sri Mulyani: Amazon Plans to Enter Indonesia

The largest e-commerce service in the United States, Amazon, is planning a second expansion in Southeast Asia. After Singapore, Indonesia is the next country to be eyed by a company founded by the richest man in the world today, Jeff Bezos. Before officially arriving in Indonesia, the Indonesian government, through the Ministry of Finance, wanted to ensure that Amazon in Indonesia would comply with taxation issues.

"I'm in discussions with Amazon who are planning to enter Indonesia. I want to make sure they comply with regulations in Indonesia, especially their readiness to pay taxes," said Finance Minister Sri Mulyani Indrawati as quoted from Dataword.

Tax issues are indeed the focus of the Ministry of Finance. Previously, through the Directorate General of Taxes, the Ministry of Finance pursued tax payments from a number of global technology companies, such as Google and Facebook.

Plans since 2016

In Singapore, Amazon is here to offer regular e-commerce delivery services Amazon, Amazon Prime, and Amazon Prime Now. Amazon's plan to expand its business in Indonesia has been heavily reported since 2016.

When it was claimed Amazon start-up to expand in Southeast Asia for $2 billion, with $600 million to be focused on opening up the Indonesian market, at least for the first year.

Amazon services that are already present in Indonesia are services streaming video lesson Amazon Prime Video. Another service is International Shopping which is supported by 25 world currencies, including Rupiah, to make it easier for prospective buyers in Indonesia to use local currency and make payment transactions using debit and credit cards.

Previously, the Chinese giant had already set foot in the Indonesian market. Alibaba Group entered through the acquisition of Lazada and investment into Tokopedia, while Tencent Group entered through JD.id and Shopee.