• Wednesday, 22 November 2017

Not Reaching Tax Target, Indonesia Will Be Under Budget

target pajak, Dirjen, Anggaran

Indonesia must be able to gain 225 trillion rupiah by this December to reach tax target on 2015. Minister of Finance Bambang P.S. Brodjonegoro said that he is optimistic that Indonesia will be able to pursue achievement target of 85% Indonesia tax revenue this year. Like the previous years, tax revenue by the end of the year is usually twice as large compared to taxation revenue in November. According to Bambang, any effort must be deployed so there will not be budget deficiency or budget shortfall.

“By November, income tax reaching 105 trillion rupiah. Throughout history, tax revenue in December could be twice greater than November. If we double 105 trillion rupiah, it would be 210 trillion rupiah, so it will be near the shortfall target,” said the Minister of Finance. If this number reached, we still need additional revenue for about 15 trillion rupiah.

The number of this calculation, according to Bambang, will be reached with the policy of assets company revaluation which is expected to contributed to reach tax target. In the state budget changing (APBNP) 2015, this 85% tax revenue is worth 1.294,26 trillion rupiah.

Former General-Director of tax, Sigit Priadi Pramudito, resigned for not being able to help Indonesia reach tax revenue target this year. He has been delivered his resignation since September 2015. Right in the first day of December, Sigit submit a letter of official resignation with consideration possibility of small tax achievement revenue reach the expectation of the government. Sigit has recorded as the ex General-Director with the most short time to serve in Indonesia, which is only 10 months after replacing Fuad Rahmany.

With this, the in-replacement General-Director Ministry of Finance (Kemenkeu) is handled by Ken Dwijugiasteadi. Bambang, who also is a former dean of the Faculty of Economic in University of Indonesia said that the position Ken temporary handle could be a permanent position as a General-Director if the tax target reached. Ken can directly confirmed as the new General-Director of Taxation without having to go through formal echelon I mechanism in the Ministry of Finance. “So it depends on myself that he could be directly appointed. Fellow echelon I is legal to be directly appointed, no need to auction again. Basically we need to see his achievement by December,” said Bambang.

Before serving as the in charge General-Director of Taxation, Ken served as expert staff in the Minister of Finance on Tax Laws Regulation and Enforcement. He previously served as the Head of Regional Offices in the General Directorate of Taxes in East Java II, once occupied in a strategic position in DJP representatives of the regions and at the central government level. The absorption of tax by this December be transferred to Ken, that according to Bambang, is a person that could understand the situation since he was placed in regions.

In general, Bambang portray the year of 2015 as a quite complex year remembering the world economic problems that reached its peak in this year. The value of rupiah become weaker compared to US dollar and was valued above 14.000 rupiah per dollar while assuming value used by the government was 12,500 for APBNP. According to Bambang, issue for the increasing level of rate interest by the US Federal Reserve has been started since the middle of 2013 and said will still give negative impact to Indonesia until the next two to three years. Not to mention the decreasing commodity prices that is a very influential to companies and employment in the oil and coal industrial sector.

Some time ago the world is also influenced by the economic slowdown in China when its economic growth was not reached seven percent. According to the International Monetary Fund (IMF), global economic growth will only reached 3.1% while the last year growth was 3.4% and projection in the next year is 3.6%.

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Grace Eldora

Grace Eldora Sinaga is a journalistic practitioner, graduated from Faculty of Communication Study Majoring Journalism, Unpad. She loves to learn Asian cultures and photography. She can be contacted at gracel@buminawa.com or twitter @glaceldo.