President Joko Widodo Encourages Implementation of Tax Information Openness
Date 5 September 2016
President Joko Widodo said that Indonesia supports the implementation of the policy of financial information exchange on taxation sector in order to increase the revenues of developing countries.
Being the keynote speaker at the second session of the G-20 Summit in Hangzhou Internatioal Expo Center, the PRC, on Monday (5/9), the President said that Indonesia encourages the establishment of a fair and transparent internatioal taxation system. Moreover, Indonesia urges a number of G-20 member countries not to make a policy that can harm other countries.
Concerning global economic slowdown, Indonesia commits to increasing its tax revenues and sustain business as well as investment climate. It needs a fair and transparent international taxation system, the President firmly said.
The President stated that international cooperation in that financial system can prevent tax evasion and support a conducive tax policy in each member country. The President believes, the system can eventually increase the revenues of developing countries.
Thus, President Joko Widodo supports cooperation and coordination among the G-20 member countries to make it happen. The form of support mentioned by the President is an implementation of Automatic Exchange of Information (AEol) or information openness on taxation sector.
I believe, financial transparency through AEol will bring benefits in overcoming prohibited financial current that make developed countries loss for years, the President stated.
Corruption Eradication Effort
Before the G-20 member countries leaders, in line with the efforts to reform taxation system, the President also encouraged to establish cooperation to eradicate corruption. The President mentioned that Indonesia can be the main example of a country that is proactive in eradicating corruption.
I believe the G-20 must strengthen anticorruption cooperation. In this regard, Indonesia can be the example, the President affirmed.
The President added, at the moment, Indonesia has done various efforts to eradicate corruption, such as by improving transparency in private sectors and promoting anti corruption values in the society.
Regarding taxation sector, once again, the President explained that Indonesia tries to improve the condition of the economy by reforming the system and also create economic policy packages related with tax incentives for investors to prevent double taxes.
If this tax reform is successful, other countries can follow. However, if it fails, it will affect the G-20 member countries and others, the President said.
On that occasion, President Joko Widodo also conveyed his respect to the President of the United States, Barack Obama, who also attended the Summit. It is the last G-20 Summit for President Obama.I would like to convey my utmost appreciation for his contribution in accelerating the recovery of global economy, the President concluded. (DID/ES)(MMB/YM/Naster)