The Performance of Indonesian Businesses during COVID-19 Pandemic: Do Technological Dependence and Tax Incentives Matter?

39 Pages Posted: 9 May 2022

See all articles by Arifin Rosid

Arifin Rosid

Directorate General of Taxation; Department of Accounting

Andreas Prasetyo Nugroho

Ministry of Finance - Indonesia

Bobby Indra Bachriansyah

Ministry of Finance - Indonesia

Date Written: April 28, 2022

Abstract

No previous study in emerging economies has investigated the impact of technological dependence on business performance during the COVID-19 pandemic. Moreover, no detailed analysis has been conducted to study the link between the utilisation of tax incentives and business performance during these unprecedented times. Based on nationwide survey data comprising 12,361 Indonesian businesses, this study examines the association between technological dependence, tax incentives, and business performance. This paper reveals strong empirical evidence indicating information technology and tax incentives have facilitated Indonesian businesses to be more resilient during the pandemic. While demonstrating the role of tax incentives in supporting business resiliency, the finding implies that the Indonesian government needs to accelerate the expansion of digital infrastructure across the nation and encourage nontechnology-based businesses to reap the benefit of adopting information technology. These results can be used to compare with those from other emerging economies or developed countries.

Keywords: COVID-19 pandemic, technological dependence, business performance, tax incentives

JEL Classification: H25, H32, H53, M15

Suggested Citation

Rosid, Arifin and Nugroho, Andreas Prasetyo and Bachriansyah, Bobby Indra, The Performance of Indonesian Businesses during COVID-19 Pandemic: Do Technological Dependence and Tax Incentives Matter? (April 28, 2022). Available at SSRN: https://ssrn.com/abstract=4102244 or http://dx.doi.org/10.2139/ssrn.4102244

Arifin Rosid (Contact Author)

Directorate General of Taxation ( email )

Mar'ie Muhammad Building 8th floor
Jl. Gatot Subroto Kav 40-42
Jakarta, South Jakarta 12190
Indonesia

HOME PAGE: http://arifinrosid.com

Department of Accounting ( email )

Kampus Baru UI Depok
Jawa Barat, 16424
Indonesia

Andreas Prasetyo Nugroho

Ministry of Finance - Indonesia

Bobby Indra Bachriansyah

Ministry of Finance - Indonesia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
83
Abstract Views
332
Rank
539,499
PlumX Metrics