Google Understands Why Indonesia Wants Its Fair Share: Sri Mulyani

Jakarta Globe, Tabita Diela, October 27, 2016

Indonesia is bullish on reaching a settlement with technology giant Google,
Finance Minister Sri Mulyani Indrawati said on Thursday (27/10). (Reuters Photo/
Stephen Lam)

Jakarta. Indonesia is bullish on reaching a settlement with technology giant Google, Finance Minister Sri Mulyani Indrawati said on Thursday (27/10).

"We have already communicated with Google," Sri said during a meeting at the Jakarta Foreign Correspondents Club.

"I think there is at least an understanding about why Indonesia would like to have a fair share of the revenue and we do hope that we're going to reach an agreement," she said.

Senior Google Asia Pacific executives reportedly met Indonesian tax officials on Wednesday for negotiations on the company's tax bill.

"I will make sure that our team treats this issue professionally," Sri said.

The government earlier claimed that Google Indonesia, the company's local representative, paid an "unfairly small" amount in tax as it only allocated about 4 percent of its total revenue from advertisements to be subject to the 10 percent income tax.

Tax experts have urged the government to create a stronger regulation to tax over-the-top players.