Indonesia Wants Netflix to Open Office, Pay Tax

Jan 13, 2016Updated May 30, 20251 min read

If Netflix wants to obtain a but, the company must obey local regulations, such as opening an office and hiring employees. Furthermore, it must also obey tax regulations, which means every transaction with Netflix in Indonesia will be taxed.

According to Kompas.com, the obligation to have a business license also applies to other over-the-top Internet-based services, such as Google and Facebook.

These permanent businesses are required to pay corporate income tax and value added tax for every transaction made in Indonesia.

Netflix’s video-streaming service went live in more than 130 countries, including Indonesia, last Wednesday as chief executive Reed Hastings aimed to counter slowing growth in the US.

Indonesian users can choose from three monthly subscription plans on Netflix, with the basic plan priced at Rp 109,000 ($8) per month.

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Mei Ling Tan

Contributor · RetailNews.asia

Mei Ling Tan is the Editor of Retail News Asia, where she leads the editorial team in delivering in-depth coverage of Asia’s dynamic retail landscape. With over a decade of experience in business journalism, Mei Ling is known for her sharp analysis, deep industry insights, and commitment to uncovering the stories behind Asia’s most innovative retail brands. Before joining Retail News Asia, Mei Ling held senior reporting roles at regional business publications, covering everything from consumer trends to digital transformation in retail. A graduate of the National University of Singapore with a degree in Communications and New Media, she combines journalistic integrity with a strong understanding of evolving market forces. Outside the newsroom, Mei Ling is a frequent speaker at industry panels and a mentor for young journalists.

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