President Jokowi Thinks That Repatriation Funds is Still Relatively Small

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 5 Desember 2016
Category: News
Read: 4.977 Views
President Jokowi delivers his remarks at Tax Amnesty Dissemination Period II, at Platinum Hotel, Balikpapan, on Monday (5/12) afternoon (Picture: Deny S./Public Relations Office)

President Jokowi delivers his remarks at Tax Amnesty Dissemination Period II, at Platinum Hotel, Balikpapan, on Monday (5/12) afternoon (Picture: Deny S./Public Relations Office)

President Joko ‘Jokowi’ Widodo thought that Rp143 trillion repatriation funds that collected from the first period of tax amnesty program is still relatively small compared with the money kept abroad which amount reaches Rp11,000 trillion.

“The amount is still small. The repatriation fund is just Rp143 trillion. Very small,” the President said when delivering his remarks at Tax Amnesty Dissemination Period II, at Platinum Hotel, Balikpapan, East Kalimantan, on Monday (5/12) afternoon.

The President explained that Indonesia actually has a lot of money. The money that kept by Indonesian people abroad reaches Rp11,000 trillion whereas the State Budget is around Rp2,000 trillion in one year. However, it needs some conditions to bring the money back so that the owner of the money feels comfortable in bringing back their money.

Nevertheless, the President firmly said that the first period of tax amnesty program is the best in the world. “At the first period, it is already 30.88 percent of GDP. It is quite huge. Alhamdullilah, the redemption money almost reaches Rp100 trillion; it is already Rp99.2 trillion. It is also quite huge,” the President said.

This huge amount showed that the business people trust the Government, but for the President, it is not sufficient. “For me, it is not sufficient. There is still huge funds abroad,” the Presiden said.

The President reminded that in 2020, there would be inter-country information openness so we can get information who keep their money in Switzerland and how much they have.

“I will know who keep their money in Singapore. Now, I dont. However, in 2018 when all countries have signed, they will disclose all information,” the President reminded

Therefore, the President reminded all to be open. The President mentioned there are tax payers whose redemption money is too small. “At the second period, it is only 3 percent. In other countries, it could be 25 or 30 percent. Unlike us,” the President further said.

According to the President, Indonesia now needs the money because our country needs competitiveness. Although Indonesia has jumped from rank 106 to 91 in ease of doing business rank, but it is still at rank 91.

Our competitiveness index, the President added, is still under Singapore, Malaysia, and Thailand. This is the real condition that must be informed to all people, particularly business world. “Our position must be improved,” the President said.

Meanwhile, for Kalimantan, President Jokowi explained that out of 1.3 million tax payers, there are only 23,000 tax payers who participate in tax amnesty. It is only 1.8 percent.

Therefore, the President invited tax payers in Kalimantan to use the opportunity to participate in tax amnesty. “If not, when the program is over, at the end of March 2017, the fine would be high. This is the rules and regulations,” the President said.

Also attending the event were Minister of Finance Sri Mulyani Indrawati, Cabinet Secretary Pramono Anung, and Governor of East Kalimantan Awang Faroek. (RMI/GUN/DNS/ES) (MMB/YM/Naster)

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