Indonesia targets Google, Facebook in push for more tax

Jakarta

INDONESIA is widening its tax net to target global technology giants such as Google and Facebook, a strategy that's raising red flags for fear it may deter foreign investment.

Finance Minister Sri Mulyani Indrawati is 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 (S$10.5 billion) in income from penalties and is now turning its focus to companies such as Apple, Twitter and Yahoo! .

The latest salvo from the tax office underscores the challenge President Joko Widodo fac…