TEMPO.CO, Jakarta - The government's decision to include foreign banks as receivers of the tax amnesty funds is causing a public uproar. There are worries that the repatriated funds using the tax amnesty program will not be fully used for state interests, especially with rumors that this decision was reached soon after Citibank Indonesia CEO Batara Sianturi visited the finance ministry two weeks ago.
Tempo reporter Agus Supriyanto met with Finance Minister Bambang Brodjonegoro at the House of Representatives last week, who did not deny his meeting with Citibank as well as with other parties. "I must listen to all input," he said.
Is it true that your meeting with Citibank Indonesia CEO Batara Sianturi influenced the decision to include foreign banks as tax amnesty fund receivers?
You want to know if I was influenced by Citibank, right? Of course not. I must listen to all input and decide which ones are the best. At the meeting, they (the Citibank people) said that a foreign branch or a bank owned by foreign parties is still regulated by the Financial Services Authority (OJK). You have to understand that banking is a heavily regulated sector. There is no way they will fool around, or they will face the risks of being terminated, sanctioned and for banks, that would be costly. Let me also remind banks affiliated with Singapore not to play around with their private banking.
What do you mean by playing around?
Well, people can come up with certain ideas. That's why we have three lock-up requirements (RDN, custody and trustee), which will be used to monitor every movement of the funds. The banks must be the ones to report it. And at any time, we can come and check without having to wait for their reports. Bottom line: We will secure this.
Is it true that before meeting the Citibank people, you also met with OJK chief Muliaman Hadad to talk about foreign banks?
Pak Muliaman advised us to include foreign banks, especially Singaporean banks. He communicates often with people planning to repatriate their overseas assets. Please look at it clearly. I have every right to meet anyone, including you. Pak Muliaman gave me positive input, which is to ensure that the money can enter easily and prevent taxpayers from cancelling their fund repatriation because of any hassle. If they are accustomed to the services of Bank A but are then mandated to go with Bank XYZ while there is actually an Indonesian version of Bank A, they might cancel their plan to repatriate their assets. They might declare it, but that's all it becomes just tax money. It would waste President Joko Widodo's efforts in asking them to bring back their money to Indonesia.
What about rumors of Singapore trying to block the tax amnesty program?
I have (diplomats) in Singapore who tell me that, to this day, there has been no single evidence of what social media is reporting. Whether exempting Indonesians from taxes or other regulations, those are just rumors. It must have been started by private bankers in Singapore. Even so, we are still on guard, ready to anticipate anything. (*)
Read the full interview in this week's edition of Tempo English Magazine