TEMPO.CO, Jakarta - President Joko “Jokowi” Widodo said he is not yet satisfied with the results of the tax amnesty program, currently in its second period. President Jokowi said that the tax amnesty program could yet bring in Rp11,000 trillion worth of assets stashed abroad by Indonesians.
“The best among countries implementing [tax] amnesty, but is still small compared to the existing potential. The assets stashed abroad by Indonesian citizens reach Rp11,000 trillion. I already have their names,” the President said in a dissemination of the tax amnesty in Balikpapan, December 5, 2016.
Jokowi said that through the tax amnesty program Indonesia has brought in Rp99.2 trillion in retribution fees or 30.38 percent of the gross domestic product (GDP). The figure significantly surpasses that of other countries, such as Italy, Poland, and Hungary who only managed to generate between Rp15 trillion and Rp50 trillion in retribution fees.
Moreover, as many as Rp143 trillion has been repatriated and Rp3.972 worth of assets declared in the tax amnesty program.
However, the Jokowi administration is already targeting infrastructure development in every sector which is expected to require Rp4,900 trillion to complete. Between 2014-2019, according to the President, the Government can only generate Rp1,500 trillion. “The rest can be [generated] from businesses, private sectors, and tax amnesty,” he said.
Jokowi has urged taxpayers to join the tax amnesty program, which will end on March 2017. After the conclusion of the tax amnesty program, he said that the Government will take firm actions against tax avoidance.
“The tax amnesty in Indonesia is very generous. But when the program ends, I will leave it to the Finance Ministry and tax office. They can process it,” he said.
SG WIBISONO
