RI Trapped in Dilemma Following Digital Product Import Duty Intention

Tax Low

Indonesia is set to impose import duties on foreign digital products. Consequently, the Indonesian government has called on the World Trade Organization (WTO) to lift the moratorium on import duties on digital products that have been in place since 1998. Addressing this issue, Jeff Paine, Managing Director of the Asia Internet Coalition, anticipates that the imposition of import duties and taxes could adversely impact Indonesia's digital economy. "We're grappling with inflation challenges. If small businesses have to pay more for digital products, it could hamper innovation," he stated in an interview with Katadata.co.id on Feb 1.

Previously, Nirwala Dwi Heryanto, Director of Communication and User Guidance at the Finance Ministry's Directorate General of Customs and Excise, mentioned that Indonesia has consistently rejected the moratorium on import duties on digital products since 1999. "We have consistently rejected the moratorium until now," he said. However, Nirwala notes that there is a significant possibility that the moratorium will continue in 2024. "It might even become a permanent moratorium," he added. As long as the moratorium persists, all countries are prohibited from imposing import duties on digital goods.

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