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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Strava Assures Premium Subscription Prices Unchanged Despite New VAT in Indonesia

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Strava will absorb the additional costs associated with Indonesia's new Value Added Tax (PPN) policy.
  • The company assured users that the price of premium subscriptions will remain unchanged.
  • This move aims to maintain affordability for its Indonesian user base.

Fitness tracking app Strava has announced that it will absorb the costs of Indonesia's new Value Added Tax (PPN) policy, ensuring that the prices for its premium subscriptions will not increase for users in the country.

The Indonesian government recently implemented a 11% VAT on digital services provided by foreign companies, a policy that took effect on January 1, 2024. This tax was expected to affect the pricing of various online services, including subscription-based platforms like Strava.

However, Strava has proactively stated that it will cover the additional tax burden itself. This decision aims to prevent any price hikes for its Indonesian customers, demonstrating a commitment to maintaining the accessibility and affordability of its premium features. The company's assurance means that users can continue to enjoy Strava's premium services at the current rates without facing increased costs due to the new tax regulation.

DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.