President Jokowi Meets APINDO, HIPPINDO to Discuss Employment, Taxation
Employment and taxation were two issues highlighted during a meeting between President Joko Jokowi Widodo and the Indonesian Employers Association (APINDO) and the Indonesian Shopping Tenants Association (HIPPINDO).
Regarding employment, Chairman of the APINDO Haryadi B. Sukamdani said that in the last 10 years, capital-intensive industry has more popular than labor industry, while in fact, from total population of 265 million, Indonesia has more than 130 million workforces.
“Thus, it is necessary for the Government to review Law on Manpower since it is no longer suitable with the current condition,” Haryadi told reporters after the meeting, which took place at the Merdeka Palace, Thursday (16/5).
According to Haryadi, labor-intensive industry with large export value has already moved to other countries, such as Vietnam, Myanmar, Bangladesh, Sri Lanka, Cambodia, and Laos. Therefore, Indonesia should follow their steps by focusing not only on capital-intensive but also on labor-intensive industry, he added
On that occasion, the APINDO and the HIPPINDO also provided input on regulatory issues and both associations considered that the current regulations are quite confusing as every ministry or institution has their own regulations.
“Different institution has different regulation, Haryadi added.
Other than those issues, Haryadi also discussed issue on taxation, particularly on the Value Added Tax (VAT) and Income Tax (PPh) Law. He also explained that taxation management under the Directorate General of Taxes and the Directorate General of Customs of Ministry of Finance have worked well so there is no need to a new institution to handle taxation issue.
We rather focus on the Laws on VAT and PPh which have direct impact to the industry,” Haryadi said. (FID / OJI / ES)
Translated by: EstuWidyamurti
Edited by: M. Ersanpamungkas