Facebook Gets Principle Permit for BUT, This is What Menkominfo Says

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JAKARTA, thepresidentpost.com – The Investment Coordinating Board (BKPM) has given the principal permit to Facebook which is included in the Over The Top (OTT) companies. With the principle permit, the American company can set up a permanent business entity (BUT) in Indonesia.

“I do not know the details, but as far as I know Facebook has got the principle permit to establish a company in Indonesia, but it must be checked its KBLI (Indonesian Standard Industry Classification), whether as a red office like Twitter, whether a services company like Google Indonesia, or whether a full play service, I do not know yet, but the principle permit has been given by the head of BKPM,” said Communications and Information Technology Minister (Menkominfo) Rudiantara at the State Palace, Jakarta, on Thursday (6/22).

Up to now, Rudiantara asserted there is no Facebook company in Indonesia. If it becomes a permanent business entity (BUT), then the Indonesian government will impose taxes like on the other public companies.

“Once established in Indonesia, it becomes an Indonesian company who is trading the commercials in the virtual world, so the tax will be applied as usual,” he said.

Only, the minister added that he did not know whether the tax would be imposed since operating in Indonesia or back date.

“I do not know, but the tax imposed will be the ordinary one, yes the PPh (income tax),” he said. (DTK/TPP)