Indonesian government will put a 10% of value added tax (VAT) on digital products and services sales starting July 1. The policy is part of the government’ efforts to create justice and level playing field for domestic and foreign companies.

Based on the regulation, digital products such as music and film streaming services, digital applications and games, and other online services from abroad that have a significant economic presence and have taken economic benefits from Indonesia through their trade transactions, will be treated the same such as conventional products or similar digital products in the country.

Last April. finance minister, Sri Mulyani Indrawati, said the Southeast Asian largest economy regulates the digital tax for global technology companies lieu of law Number 1 Year 2020 concerning Financial Policy in To Deal with the COVID-19.