Asia is a considerable market for digital goods and services. In 2019, more than half of the Asia... more Asia is a considerable market for digital goods and services. In 2019, more than half of the Asian population accessed the internet (Internet World Stats 2019), and the internet economy in Southeast Asia had grown to $100 billion; it is expected to increase further to $300 billion by 2025. In Indonesia, the largest economy in this region, the internet market grew rapidly (by 49%) from 2015 to 2019, and its internet economy reached $40 billion (Google, Temasek, and Bain & Company 2019). Digitalization contributes signifcantly to economic growth in global and emerging markets. In terms of growth of per capita gross domestic product (GDP), each additional 10% of internet penetration adds 0.77% in developed countries and 1.12% in emerging markets (Qiang, Rossotto, and Kimura 2009). It also infuences how consumers obtain goods and services, whether from physical or online stores. In 2020, 74% of global internet users purchased a product online. The total value of the global business-to-consumer e-commerce market is $3.43 trillion, with an annual growth rate of 18% (Kemp 2020a). In terms of e-commerce adoption, the top 20 economies in the world include ten Asian economies, and those with the very highest rates include Indonesia with 88%, Thailand with 82%, and Malaysia with 82%, far beyond the global average of 74% (see Figure 3.1). A primary characteristic of digitalized business is cross-jurisdictional scale without mass. Digitalization allows companies to reach customers in market countries without any physical presence. It also challenges the current taxation system in terms of consumption 1 and income taxes. Although consumption tax does not involve fundamental issues regarding the allocation of taxing rights, market countries still face challenges in collecting it, especially for services and intangible goods. Meanwhile, the current income tax system does not give market countries the right to tax foreign enterprises if they have no physical presence in a given country. In the absence of a globally accepted solution, some countries have chosen to implement temporary measures to tax digitalized businesses. Governments' inability to tax foreign digital businesses creates problems on two sides. On the taxpayer side, there is an issue of fairness. While local companies are taxed on their income and supplies, foreign businesses in market countries are
Organized by the Asian Development Bank Institute, the Asian Development Bank, the National Tax A... more Organized by the Asian Development Bank Institute, the Asian Development Bank, the National Tax Agency of Japan, and the Organisation for Economic Cooperation and Development.
Key points • The economies in Asia and the Pacific are exposed to disaster risks, which can cause... more Key points • The economies in Asia and the Pacific are exposed to disaster risks, which can cause fatalities as well as economic losses. One strategy to mitigate the economic losses and strengthen financial resilience to disasters is developing disaster risk financing. • There are two policy options in implementing disaster risk financing: public sector and private sector disaster risk financing tools. Each option has challenges that need to be addressed for them to be effectively implemented. • Two possible strategies could be pursued for overcoming the implementation challenges of disaster risk financing: the establishment of institutional arrangements for a combined public– private response to disaster risk financing and the development of a state-sponsored disaster insurance scheme. No. 2017-1 (January)
Given the rapid urbanization in the Pacific island countries, sustainable infrastructure investme... more Given the rapid urbanization in the Pacific island countries, sustainable infrastructure investments and provision are crucial to curb urban poverty and informal settlements. • Housing provision for informal dwellers is associated primarily with landownership, subdivisions, governance, and legal institutional frameworks. Lack of tenure due to customary landownership remains standard across the Pacific, yet differing by country. Land reform is required to mitigate the challenges. • Affordable housing in urban areas is also associated with highcost building materials due to excessive imports and scarce local supply coupled with high wages. Therefore, skills training of land dwellers by introducing repair and renovation programs will aid in improving living conditions. • Regional collaboration on urban planning and housing policies can increase awareness of the problems of urbanization as well as opportunities for economic and social development to improve reforms in sustainable housing and green infrastructure.
Asia has grown rapidly in the past 2 decades and accounts for an increasing share of global inves... more Asia has grown rapidly in the past 2 decades and accounts for an increasing share of global investment, production, and trade. The Pacific island countries (PICs) have benefited from that growth and strengthened their economic links with Asia while loosening ties with the Americas and Europe in most cases, although not all. Still, more needs to be done to deepen integration between Asia and the Pacific by improving trade facilitation, enhancing bilateral and regional partnerships, and building better interregional transport and telecommunications infrastructure.
Manufactured exports are believed to be one of the engines of Indonesian economic growth. It is t... more Manufactured exports are believed to be one of the engines of Indonesian economic growth. It is true that Indonesia`s manufactured exports grew rapidly and its share in GDP increased year by year. Even though manufactured exports grew fast but it grew inconstantly, fluctuating year by year. Although there have been many efforts to encourage this sector, many problems still exist. To minimize the problems, government should understand the causes of the problems. Identifying these causes, can help set government on the right track. Using constant market share analysis, it is found that product composition seems to be a main problem of Indonesia's manufactured exports. Indonesia's manufactured exports concentrated in products with relatively low world demand. This is shown by the fact that products under SITC 6 and 8 which constitute more than fifty percent of Indonesia`s manufactured exports have lower world export growth than that of other products. The study also found that Indonesia's manufactured exports tend to concentrat in some specific markets such as Japan, NIEs (Singapore, Rep. of Korea, Taiwan, and Hong Kong), US, ASEAN and China. Those markets absorb more than sixty percent of total manufactured exports of Indonesia. Those markets make a strong impact on the performance of Indonesia`s manufactured export.
Asia is a considerable market for digital goods and services. In 2019, more than half of the Asia... more Asia is a considerable market for digital goods and services. In 2019, more than half of the Asian population accessed the internet (Internet World Stats 2019), and the internet economy in Southeast Asia had grown to $100 billion; it is expected to increase further to $300 billion by 2025. In Indonesia, the largest economy in this region, the internet market grew rapidly (by 49%) from 2015 to 2019, and its internet economy reached $40 billion (Google, Temasek, and Bain & Company 2019). Digitalization contributes signifcantly to economic growth in global and emerging markets. In terms of growth of per capita gross domestic product (GDP), each additional 10% of internet penetration adds 0.77% in developed countries and 1.12% in emerging markets (Qiang, Rossotto, and Kimura 2009). It also infuences how consumers obtain goods and services, whether from physical or online stores. In 2020, 74% of global internet users purchased a product online. The total value of the global business-to-consumer e-commerce market is $3.43 trillion, with an annual growth rate of 18% (Kemp 2020a). In terms of e-commerce adoption, the top 20 economies in the world include ten Asian economies, and those with the very highest rates include Indonesia with 88%, Thailand with 82%, and Malaysia with 82%, far beyond the global average of 74% (see Figure 3.1). A primary characteristic of digitalized business is cross-jurisdictional scale without mass. Digitalization allows companies to reach customers in market countries without any physical presence. It also challenges the current taxation system in terms of consumption 1 and income taxes. Although consumption tax does not involve fundamental issues regarding the allocation of taxing rights, market countries still face challenges in collecting it, especially for services and intangible goods. Meanwhile, the current income tax system does not give market countries the right to tax foreign enterprises if they have no physical presence in a given country. In the absence of a globally accepted solution, some countries have chosen to implement temporary measures to tax digitalized businesses. Governments' inability to tax foreign digital businesses creates problems on two sides. On the taxpayer side, there is an issue of fairness. While local companies are taxed on their income and supplies, foreign businesses in market countries are
Organized by the Asian Development Bank Institute, the Asian Development Bank, the National Tax A... more Organized by the Asian Development Bank Institute, the Asian Development Bank, the National Tax Agency of Japan, and the Organisation for Economic Cooperation and Development.
Key points • The economies in Asia and the Pacific are exposed to disaster risks, which can cause... more Key points • The economies in Asia and the Pacific are exposed to disaster risks, which can cause fatalities as well as economic losses. One strategy to mitigate the economic losses and strengthen financial resilience to disasters is developing disaster risk financing. • There are two policy options in implementing disaster risk financing: public sector and private sector disaster risk financing tools. Each option has challenges that need to be addressed for them to be effectively implemented. • Two possible strategies could be pursued for overcoming the implementation challenges of disaster risk financing: the establishment of institutional arrangements for a combined public– private response to disaster risk financing and the development of a state-sponsored disaster insurance scheme. No. 2017-1 (January)
Given the rapid urbanization in the Pacific island countries, sustainable infrastructure investme... more Given the rapid urbanization in the Pacific island countries, sustainable infrastructure investments and provision are crucial to curb urban poverty and informal settlements. • Housing provision for informal dwellers is associated primarily with landownership, subdivisions, governance, and legal institutional frameworks. Lack of tenure due to customary landownership remains standard across the Pacific, yet differing by country. Land reform is required to mitigate the challenges. • Affordable housing in urban areas is also associated with highcost building materials due to excessive imports and scarce local supply coupled with high wages. Therefore, skills training of land dwellers by introducing repair and renovation programs will aid in improving living conditions. • Regional collaboration on urban planning and housing policies can increase awareness of the problems of urbanization as well as opportunities for economic and social development to improve reforms in sustainable housing and green infrastructure.
Asia has grown rapidly in the past 2 decades and accounts for an increasing share of global inves... more Asia has grown rapidly in the past 2 decades and accounts for an increasing share of global investment, production, and trade. The Pacific island countries (PICs) have benefited from that growth and strengthened their economic links with Asia while loosening ties with the Americas and Europe in most cases, although not all. Still, more needs to be done to deepen integration between Asia and the Pacific by improving trade facilitation, enhancing bilateral and regional partnerships, and building better interregional transport and telecommunications infrastructure.
Manufactured exports are believed to be one of the engines of Indonesian economic growth. It is t... more Manufactured exports are believed to be one of the engines of Indonesian economic growth. It is true that Indonesia`s manufactured exports grew rapidly and its share in GDP increased year by year. Even though manufactured exports grew fast but it grew inconstantly, fluctuating year by year. Although there have been many efforts to encourage this sector, many problems still exist. To minimize the problems, government should understand the causes of the problems. Identifying these causes, can help set government on the right track. Using constant market share analysis, it is found that product composition seems to be a main problem of Indonesia's manufactured exports. Indonesia's manufactured exports concentrated in products with relatively low world demand. This is shown by the fact that products under SITC 6 and 8 which constitute more than fifty percent of Indonesia`s manufactured exports have lower world export growth than that of other products. The study also found that Indonesia's manufactured exports tend to concentrat in some specific markets such as Japan, NIEs (Singapore, Rep. of Korea, Taiwan, and Hong Kong), US, ASEAN and China. Those markets absorb more than sixty percent of total manufactured exports of Indonesia. Those markets make a strong impact on the performance of Indonesia`s manufactured export.
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