Indonesia says Internet giants need to pay tax or face blockages

Students learn work on computers in a class during the holy month of Ramadan at the Al-Mukmin Islamic boarding school in Solo, Indonesia Central Java province, August 2, 2011. REUTERS/Beawiharta/Files

JAKARTA: Global Internet-based firms could have their services blocked in Indonesia if they do not obtain "permanent establishment" status in the country and pay Indonesian tax, government officials said. 

Finance Minister Bambang Brodjonegoro told reporters all Internet-based services must have a local presence in the form of a representative office or a full-fledged company.