President Jokowi: Tax Reform Must be Carried Out Comprehensively

President Jokowi accompanied by Vice President Jusuf Kalla prior to a Limited Cabinet Meeting at the Presidential Office, Jakarta, Tuesday (3/9). (Photo by: Rahmat/PR).

In a bid to increase competitiveness in export and investment sectors, tax reform must continue to be carried out in a comprehensive manner, President Joko Jokowi Widodo has said.

According to President Jokowi, tax reform should cover regulations, administration, core tax system application, reinforcement of database and taxation information systems, as well as improvement of human capital in taxation field.

“So that our country does not only have a reliable tax collection system but also have a more efficient and integrated tax administration system,” President Jokowi said in his introductory remarks at a Limited Cabinet Meeting on Tax Reform for Increasing Economic Competitiveness at the Presidential Office, Jakarta, Tuesday (3/9).

Furthermore, the President ordered that the policy of providing tax incentives must be implemented in order to increase export and investment competitiveness. “Please monitor the implementation so it can really give a real kick to business entities,” he added.

The incentives could be in form of an expansion of tax holiday, changes in tax allowance, investment allowance incentives, super deduction incentives for the development of vocational and R&D activities as well as labor-intensive industries.

In addition, the President also asked to improve business ecosystems, among others the quality of infrastructure, simplification and acceleration of licensing process, as well as regulatory certainty including regulations in taxation sector.

Therefore, tax reform must be completed immediately so it can support our country’s economic competitiveness in the face of global economic uncertainty. (FID/RAH/ES)

Translated by: Galuh Wicaksono
Edited by: Mia Medyana