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Netflix Subscription Prices in Indonesia Rise

Netflix Subscription Prices in Indonesia Rise

Netflix has increased its subscription prices in Indonesia, Starting 1st September, following a 10% increase in value-added tax (VAT).

In new regulations implemented by the Minister of Finance Regulation, all imported products in the form of intangible goods and services, such as online streaming services, will be subject to VAT of 10%.

Following the adjustment, the Netflix subscription price for packages in Indonesia are as follows:

  • Mobile package: Rp 54,000
  • Basic package: Rp 120,000
  • Standard package: Rp 153,000
  • Premium package: Rp 186,000

Apart from Netflix, there are ten other companies that have registered to collect the added VAT. This includes, but is not limited to companies such as Spotify, Audible, Alexa Internet, and Amazon.

The VAT addition is also a part of the government’s efforts to create a level playing field for both foreign and local investors.

“We want a balance between conventional businesses and digital businesses,” noted the Director-General of Taxes.

Source: Kompas

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