Uber Gets Green Light from BKPM for Legal Entities

After receiving "pressure" from a number of parties, including the regulator (in this case the Ministry of Transportation), Grab and Uber seems to be really serious about getting a permanent establishment and complying with transportation service licensing regulations. Grab have agreed participated in the KIR test activity and provided 2 tax options, while Uber had received the green light from the BKPM to establish a PMA (foreign capital) based business entity. Both of them collaborated with the Indonesian Rental Entrepreneurs Association (PRRI) Cooperative for transportation licensing and tax payments.

As quoted from Time, Deputy for Investment Control at BKPM Azhar Lubis ensured that Uber had obtained a web portal permit from BKPM. Uber, just like Grab, also partner with PRRI Service Cooperative for ease of licensing of transportation services, ease of taxation for payments to drivers, and convenience for partner drivers to obtain insurance and vehicle credit.

Previously, the discourse on Uber's legal entity has been rolling since July 2015.

[See also:Conventional Business, Technology, and Protracted Conflict]

Of course this is good news to end the polemic of transportation services, between conventional taxi services and application-based transportation services.

One thing that is still an obstacle is taxation for companies. Grab admits that they will pay taxes directly for payments using a credit card, while Uber itself has not disclosed anything about the income it earns. So far, as we know, Uber uses technique double irish with a dutch sandwich in order to divert financial (and taxation) activities in countries tax haven.