President Jokowi Hopes Overseas Funds Can Be Repatriated Soon

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 8 Agustus 2016
Category: News
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Photo caption: President Jokowi at the Dissemination of Tax Amnesty Program in Bandung (8/8). (Photo by: Public Relations Division/Fitri)

Photo caption: President Jokowi at the Dissemination of Tax Amnesty Program in Bandung (8/8). (Photo by: Public Relations Division/Fitri)

 President Joko ‘Jokowi’ Widodo said that many countries are now experiencing economic instability.

Some countries post a declining economic growth by 4 percent, some have minus growth (minus 3, minus 0.97) and even Indonesia’s neighboring countries are experiencing negative economic growth by 1 – 1.5 percent.

“What are the consequences? Almost all countries are now competing to win investment. Almost all countries are now competing to have repatriated funds. Indonesia is no exception. We also want as much as repatriated funds,” President Jokowi said at the dissemination of the Tax Amnesty Law at Ballroom Hotel Intercontinental, Bandung, West Java,on Monday (8/8).

Nevertheless, President Jokowi added Indonesia has many funds but a great deal of it is not kept in the country. President Jokowi also said that he knows information on the funds kept abroad such as in Hong Kong, Singapore, Swiss, and some other countries.

With the Law on Tax Amnesty, President Jokowi hopes the funds can be repatriated to Indonesia and can be used to build the country.

“Therefore, we’ve been working hard so the money can be returned to Indonesia. That’s why we provide legal basis, not only a government regulation or a presidential regulation, but also a law with a certain legal force, that is Law on Tax Amnesty,” the President said.

The Government, President Jokowi added, hopes that Law on Tax Amnesty can bring concrete benefits for the people and the state. The President added that the funds from this Tax Amnesty program is very needed by the Government to build infrastructures that needs a budget of around Rp4,900 trillion.

“We are building infrastructures and we need Rp4,900 trillion. However, we can only provide Rp1,500 trillion from the State Budget so we still need Rp3,400 trillion. How do we get the money? It’s from inflow of repatriated funds from this Tax Amnesty program,” the President said, adding that the Government continues to build infrastructures because Indonesia does not want to lose the competition with other countries.

On that occasion, President Jokowi reminded that Indonesia’s logistic costs is 2.5 times bigger than those in Singapore or Malaysia because Indonesia’s infrastructures are not ready.

“We still lack roads, airports, seaports,so prices of goods are expensive. Therefore, we continue to build infrastructures because we want to compete with other countries,” the President said.

In addition to provide funds to build infrastructures, President Jokowi said that the Tax Amnesty program is also expected to boost Rupiah exchange rate.

According to the President, before funds from the Tax Amnesty program come to the country, in the first quarter of 2016, Indonesia’s economic growth reaches 4.94 percent, while in the second quarter of 2016, the growth reaches 5.18 percent.

“Once the money from the Tax Amnesty program have come, we will get to see the improvement of our economy,” the President said.

President Jokowi said that similar Tax Amnesty programs were once implemented in 1964 and in 1984 it was not successful. In 1964, it failed because of rebellions, while in 1984 it was not successful because of oil and wood resources booming issues.

“Now we have the momentum, be it from political supports and external momentums, namely information transparency among banks, among countries in 2018,” the President said, adding that with this momentum, no one can hide their wealth because all financial institutions, both at home and abroad, are already transparent.

“So for those of you who have deposited abroad, I would like to remind you that this is the last Tax Amnesty program. We have transparency among countries. Even before this, I have alreadyhad information. So once again, this is the last Tax Amnesty program,” the President said.

Also joining the President at the event were First Lady IbuIriana Jokowi, Minister of State Secretary Pratikno, Governor of Bank Indonesia Agus Martowardojo, Minister of Finance Sri MulyaniIndrawati, Minister of State-owned Enterprises RiniSoemarno, Attorney GeneralPrasetyo, Head of the Financial Services Authority (OJK) MuliamanHadad, and Director General of Taxes of the Finance Ministry Ken Dwijugiasteadi. (FID/RHD/ES)(EP/YM/Naster) 

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