Remarks of the President of the Republic of Indonesia at the Limited Meeting on Tax Amnesty at the Presidential Office, Jakarta, 25 April 2016

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 25 April 2016
Category: Speech Transcript
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Unofficial English Translation

Bismillahirrahmanirrahim,

Assalamu’alaikum warrahmatullahi wabarakaatuh,

Ladies and Gentlemen,

Tax Amnesty Bill is currently under discussion at the Indonesian House of Representatives (DPR). We all respect the ongoing legislative process. However, I must affirm that the Government’s position on tax amnesty is very clear. The Government wants tax amnesty to bring concrete benefits for the national interest, for the people’s interest, particularly to augment state revenues. Secondly, we will also widen tax base so that the Government can have more extensive data of the taxpayers in the future.

Furthermore, Tax Amnesty Law is expected to repatriate the capital held abroad to Indonesia. It will generate capital inflow, so that the country will get the return of the capital which has been stored in offshore banks. We hope that the money can boost our national economy.

I also instruct Directorate General of Taxation to continuously carry out tax reform, with or without Tax Amnesty Law and capital repatriation. Furthermore, enforcement of tax law will also continue to be carried out, particularly when flaws are later discovered in tax report .

Fourth, once Tax Amnesty Bill is passed by the DPR, we want to prepare an appropriate investment instrument immediately once a massive cash inflow occurs, be it portfolio or direct investment. And, I hope the Governor of Bank Indonesia, Financial Services Authority (OJK), and Ministry of Finance will prepare the portfolio. Furthermore, Head of National Development Planning Agency (Bappenas), Head of Investment Coordinating Board (BKPM), and related ministries, as well as State-Owned Enterprises (BUMN) shall also be prepared for direct investment once the cash enters the country.

I think that is all I can say in the introductory remarks. I invite the Minister of Finance to take the floor. (Humas Setkab) (RAS/AW/YM/Naster)

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