TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution said that in several regions, regional budgets play an important role in driving the economy. Darmin asserted that the regional government's role in attracting private investors has become increasingly important.
"In 2005, when I was serving as the Director General of Tax, I have agreed with the House of Representatives to hand over the [management] of Land and Building Tax (PBB) and Land and Building Rights Acquisition Tax (BPHTB) to regional governments so that they can have tools to attract private [investors]," Darmin said on Wednesday, December 7, 2016.
The PBB and BPHTB, according to Darmin, has a strategic role in the State Budget due to its large influence to the total amount of budget in each region. "However, it is very important for regional [government] to identify every activities that needs to be supported and use both [PBB and BPHTB] to attract private investors," Darmin said.
Darmin said the regional government would miss out chances to generate revenues of they failed to utilize the PBB and BPHTB to attract investors.
ANGELINA ANJAR SAWITRI
