Google, Facebook Under Pressure On Indonesian Taxes

(RTTNews) - Indonesia is widening its tax net to target global technology giants like Google and Facebook Inc., a strategy that's raising red flags for fear it may deter foreign investment, Bloomberg reported.

Finance Minister Sri Mulyani Indrawati is reportedly seeking to squeeze more revenue out of an economy that's been hit by weak commodity prices and subdued demand from China, Indonesia's biggest trading partner. Halfway through a tax amnesty plan, the government has raised almost 100 trillion rupiah or $7.4 billion in income from penalties and is now turning its focus to companies like Apple Inc., Twitter Inc. and Yahoo! Inc.

The latest salvo from the tax office underscores the challenge President Joko Widodo faces in funding his ambitious infrastructure goals, and the risk that it may backfire by scaring off investors.