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Jakarta, Indonesia, February 21, 2024 /PRNewswire/ — Toward the 13th Conference of the Parties to the World Trade Organization (WTO)th Ministerial Meeting (MC)13) Coalition for Digital Prosperity Asia (DPA) sent a letter to Indonesian The Ministry of Finance, the Ministry of Trade, and the Ministry of Foreign Affairs will support the continuation of the WTO electronic transmission tariff suspension (WTO e-commerce suspension). On behalf of digital SMEs across APAC, DPA submitted the letter on behalf of its members and industry representative groups who would be affected if the moratorium expires.
The WTO's e-commerce moratorium maintains that tariffs should not be imposed on electronic transmissions. WTO members have agreed to this suspension regularly since 1998. An update will be considered in his upcoming WTO MC13. From February 26th to 29th.
The DPA letter advocates for an effective regulatory ecosystem that ensures access to digital services for the country's more than 20 million small and medium-sized enterprises. Indonesia, especially for those looking to take advantage of new technologies in areas such as digital payments, content creation, online gaming, and artificial intelligence. Given the prevalence of digital transmission, the expiration of the moratorium will affect Indonesian industries in all sectors.
Indonesian The digital economy is the engine of future national growth and currently ranks first among other ASEAN countries. Under the ASEAN Digital Economy Framework Agreement, Indonesia predicted to achieve unprecedented results $400 billion Value that only comes from the digital economy. Digitalization is at the core of this growth and plays a vital role in supporting it. Indonesian A positive approach to achieving prosperity.
The moratorium will give Indonesians access to technology that has captured the world's attention. Many essential domestic businesses require continued support from imported technology in their operations. For example, the oil and coal industry, a top exporter, relies on cloud technology for operational efficiency and security. Indonesian Online service platforms, including two decacorn companies and several unicorn technology startups, also rely on seamless cross-border data flows to grow and export their products and services overseas. Other sectors may also be affected, including agriculture, renewable energy, and the entertainment industry.
According to a 2019 OECD study, barriers to digital trade through tariff restrictions on digital products and data flows can cause economic losses that exceed the revenue generated by tariffs. By imposing customs duties, Indonesia The tax revenue loss is estimated to be 23 times the customs revenue, while 160 times the GDP collected would be given up. Indonesia.
Through this letter, DPA calls on the Indonesian government to reconsider the role of cross-border access to digital tools in aid. Indonesian Strengthening digital small businesses and the national economy.
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About DPA
DPA is a coalition of Asian digital companies driving the democratization of digital technology across all sectors. For more information, please visit digitalpropsperity.asia.
