Business players in Indonesia's property sector are not happy with the government's intention to collect more tax from the sector in 2014 and onwards. The property sector has been one of the fastest growing sectors in Indonesia's economy in recent years as demand for property has surged significantly among Indonesia's expanding middle class, resulting in massive profit numbers for Indonesian property companies. Meanwhile, the government of Indonesia has been busy taking efforts to increase tax revenues.

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Seorang pejabat pemerintah berposisi tinggi mengatakan bahwa pemerintah Indonesia berencana memotong pajak perusahaan secara bertahap dari 25% pada saat ini menjadi di bawah 18% dalam usaha untuk membuat Indonesia menjadi tempat yang lebih menarik untuk melakukan bisnis. Luhut Panjaitan, Kepala Staf Presiden Joko Widodo, mengkonfirmasi bahwa Widodo telah memerintahkan tindakan pajak yang terbaru ini. Selama beberapa minggu terakhir kita telah melihat pengumuman sejumlah kebijakan pajak baru karena pemerintah bertekad untuk mendongkrak pengumpulan pajak sebesar 30% di 2015.

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One strategy of Indonesian President Joko Widodo to generate more state revenues in order to enhance investments in social and economic development of Indonesia is by improving the country’s tax collection system. As the middle class as well as number of companies that are active in Indonesia has risen rapidly in recent years, it is disappointing that tax collection targets are rarely met in Southeast Asia’s largest economy: tax compliance is low, while corruption among civil servants (tax collectors) remains a structural problem.

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