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Ken Dwijugiasteadi: I will not look at the repatriated funds

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26 July 2016 15:38 WIB

Ken Dwijugiasteadi, the new Director General of Tax. pajak.go.id

TEMPO.CO, Jakarta - Ken Dwijugiasteadi, director-general of taxation at the finance ministry, has been exceptionally preoccupied with lobbying the House of Representatives (DPR) to enact the tax amnesty bill. Because he had to attend one meeting after another, he often spends the night at his office in South Jakarta. "My blood pressure has gone up to 170/140. I've been taking vitamin C shots and collagen once a week as part of my therapy, and my doctor comes and visits me at my office," said 58-year-old Ken.

After June 28, however, he was able to take a breath since the DPR finally passed the bill. Now, he must ensure the additional revenue of Rp 165 trillion can be achieved by the end of the year. "I hope to get more than that," said Ken, a native of Malang, East Java. To convince a skeptical public, he has made efforts to guarantee data secrecy and security of all who participate in the tax amnesty program. In fact, he has given assurances that his office, the directorate-general of taxes (DJP), will store the data outside of Java. Ken urges the public to directly monitor the development of the tax amnesty program through the DJP website.

In the middle of his busy schedule accompanying President Joko Widodo and Finance Minister Bambang Brodjonegoro to promote the tax amnesty law in a number of provinces, Ken spared some of his time for an interview with Tempo reporters Arif Zulkifli, Tomi Aryanto, Sapto Yunus, Martha Warta Silaban, Akbar Tri Kurniawan, Dini Pramita and Andi Ibnu at his office. Excerpts:

What is this tax amnesty program? 

The tax amnesty carries out two functions of the tax directorate-general, and that is budgetary and regulatory. First, the regulation is about repatriating funds from overseas and inside the country. And the tariff is the same: two percent. Those repatriated funds will be used for investment. When investment rises, so will economic growth. Economic growth will generate employment. That will lead to an increase in purchasing power and to a rise in demand. The macroeconomy will continue to turn. This means we can create new tax subjects and objects. This is very important. We will no longer chase after the same tax payers again and again.

Will it be like hunting inside a zoo?

I will be hunting over a very broad field. Everything will be the same. That's where you'll find justice. Believe me, corruptors are unlikely to take part in the program. They will be too embarrassed.

When was this program publicized to the public? 

Today (Thursday, July 14), we will start everywhere. Tomorrow, the President will promote it in a number of cities like Surabaya, Medan, Semarang, Bandung and Jakarta. In Surabaya, the event will be attended by 2,000 tax payers. This amnesty is intended for everyone, including those who still don't have an NPWP (taxpayer's registration number). People who have no NPWP but are interested in participating in the amnesty can register to get theirs online. They might even get some form of reimbursement after registering.

Are you optimistic that the Rp165 trillion target can be achieved?

God willing, I hope to acquire more than that. But right now, I will just focus on achieving the target. After that, there'll be no more negotiations. I will just execute it.

Many people still harbor doubts about this tax amnesty program. What is the DJP doing to convince people?

I will guarantee the secrecy of data. I will deploy 60 percent of 38,000 DJP employees on the ground to provide service on the amnesty. My officers will not be allowed to bring with them any form of communication when they are serving customers. This has been made very clear. Tax officials must wear the uniform determined by their respective area units to prevent any infiltration. This is to ensure security. People can also directly monitor developments on the amnesty through our website, which can be accessed by cellphones. The data is kept outside of Java.

In Singapore?

That's what I cannot reveal.

Why store the data outside of Java?

Should we be burglarized or whatever, I will have a backup. Don't be afraid of this amnesty because (documents) will use a barcode. People won't know the data are scattered around.

Tax amnesty programs in a number of countries like India and Italy have failed. What makes you so sure it will succeed in Indonesia?

In other countries, the amnesty did not involve repatriated funds, just compensation. In Indonesia, there will be repatriated funds. The tax law stresses on the principle of collective action. Other countries tend to be individualistic. People work in Indonesia, seek their fortune in Indonesia. Why not build Indonesia? (*)

Read the full interview in this week's edition of Tempo English Magazine



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