Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Facebook gets Indonesia nod for local unit, country's investment chief says

Published 06/21/2017, 02:16 AM
Updated 06/21/2017, 02:20 AM
© Reuters. FILE PHOTO: Facebook logo is seen  at a start-up companies gathering at Paris' Station F in Paris

© Reuters. FILE PHOTO: Facebook logo is seen at a start-up companies gathering at Paris' Station F in Paris

JAKARTA (Reuters) - Social networking giant Facebook Inc (NASDAQ:FB) has received an in-principle approval to set up a domestic unit in Indonesia and the government is now processing the details, the country's investment chief said on Wednesday.

Indonesia has been pushing multinational technology firms to be locally incorporated, arguing that companies such as Alphabet (NASDAQ:GOOGL) Inc's Google set up small business entities to provide "auxiliary" services and get away with minimal taxation, while booking most of their revenue from the country elsewhere.

Facebook currently operates in Indonesia through an office in central Jakarta.

"I see good intention and spirit from Facebook," said Thomas Lembong, chairman of Indonesia's investment coordinating board. "What we care about are taxes and responsible content."

The investment board and the communications ministry are currently looking at the type of business unit that Facebook will establish, Lembong said.

There are several ways to be locally incorporated in the country, including setting up a limited liability company, locally known as a PT (Perseroan Terbatas).

© Reuters. FILE PHOTO: Facebook logo is seen  at a start-up companies gathering at Paris' Station F in Paris

Facebook did not immediately respond to a request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.