Below is a list with tagged columns and company profiles.

Today's Headlines Tax

  • Indonesian Government Plans to Raise Value-Added Tax (VAT) in 2022; Example of Bad Timing?

    Indonesian Government Plans to Raise Value-Added Tax (VAT) in 2022; Example of Bad Timing?

    While Indonesia is still in the middle of the COVID-19 crisis, albeit – most likely – set to exit the economic recession in the second quarter of 2021 due to the so-called low base effect, and while Indonesian consumers continue to display reluctance to spend (reflected by 16 consecutive months of contracting retail trade on an annual basis), the Indonesian government expressed its intention to raise Indonesia’s Value-Added Tax (VAT, or in Indonesian: Pajak Pertambahan Nilai, abbreviated as PPN).

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  • Indonesia Investments' Research Report Released: February 2019 Edition

    Indonesia Investments' Research Report Released: February 2019 Edition

    On Tuesday (05/03) Indonesia Investments released the February 2019 edition of its monthly research report. The report aims to inform the reader of the key political, economic and social developments that occurred in Indonesia in the month of February 2019 and also touches upon key international developments that impacted on the Indonesian economy.

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  • Indonesia Investments' Research Report Released: January 2019 Edition

    Indonesia Investments' Research Report Released: January 2019 Edition

    On Friday (8/02) Indonesia Investments released the January 2019 edition of its monthly research report. The report aims to inform the reader of the key political, economic and social developments that occurred in Indonesia in the month of January 2019 and also touches upon key international developments that impacted on the Indonesian economy.

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  • OECD Released Corporate Tax Statistics Report, Lets Zoom in on Indonesia

    OECD Released Corporate Tax Statistics Report, Lets Zoom in on Indonesia

    Last week, the Organisation for Economic Co-operation and Development (OECD) released its Corporate Tax Statistics report. Several interesting conclusions were made in the report. Firstly, (corporate) taxes that are paid by legal entities (specifically companies) remain a key source of government revenues, particularly in developing nations. Secondly, over the past two decades there is a clear worldwide trend visible, namely: falling corporate tax rates.

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  • Finance Update: Preliminary Data Show Improving Conditions in 2018

    Finance Update: Preliminary Data Show Improving Conditions in 2018

    Despite challenging circumstances that trigger capital outflows from emerging markets – mostly related to the ongoing tariff war between the United States and China, monetary tightening in developed nations, US President Donald Trump’s unpredictable style of leadership, and rising crude oil prices in the first three quarters of the year (that cause pressure on net oil importers) – Indonesia ended 2018 in good financial health.

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  • New Tax Rules in Indonesia to Speed Up Freeport Indonesia Deal

    New Tax Rules in Indonesia to Speed Up Freeport Indonesia Deal

    After the much publicized signing by the Indonesian government and US mining giant Freeport McMoRan of the Heads of Agreement regarding the sale of a stake in Freeport Indonesia (the operator of the lucrative Grasberg mine in Papua) on 12 July 2018, we have not heard much about the deal that is valued at USD $3.85 billion.

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  • Tax Revenue Realization Growth of Indonesia Strong So Far in 2018

    Tax revenue collection is showing good growth in Indonesia so far in 2018. However, due to the ambitious target set by the central government chances of another tax shortfall remain highly probable at the end of the year. Based on data from Indonesia's Finance Ministry, non-oil & gas tax revenue realization grew 19.1 percent year-on-year (y/y) to IDR 156.8 trillion (approx. USD $11.4 billion) between 1 January and 7 March 2018, from IDR 131.7 trillion in the same period one year earlier.

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Latest Columns Tax

  • Indonesia Does Not Revise 2016 Tax Revenue Target, Realistic or Not?

    Indonesia Does Not Revise 2016 Tax Revenue Target, Realistic or Not?

    Indonesia's Finance Ministry said it will not revise the tax revenue target set in the 2016 State Budget. The Indonesian government targets to collect IDR 1,360.2 trillion (approx. USD $100 billion) worth of tax revenue in 2016, a 28.9 percent rise from tax revenue realization in 2015. However, although it is good to aim high - hence setting an ambitious target - it is also important to be realistic (to avoid budgetary turmoil and gain fiscal credibility, important for Indonesia to be eligible for a credit rating upgrade). How realistic is Indonesia's 2016 tax revenue target?

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  • Infrastructure Development Indonesia: Gaining Momentum in 2016

    Infrastructure Development Indonesia: Gaining Momentum in 2016

    After having grown rapidly in the years 2010-2013, infrastructure development in Indonesia lost its momentum in 2014. This was due to limited available government funds, uncertainty caused by the legislative and presidential elections, and the nation's slowing economic growth. After Joko Widodo became Indonesia's seventh president in October 2014, it was expected that infrastructure development would revive. However, it didn't. But Widodo made one important move by seriously reducing energy subsidies, hence making more funds available for infrastructure development.

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  • Government of Indonesia to Cut Personal & Corporate Income Tax

    Government of Indonesia Plans to Cut Personal & Corporate Income Tax

    Good news for taxpayers in Indonesia. The Indonesian government plans to lower personal income tax, which currently ranges between 5 and 30 percent, in early 2016. Indonesian Finance Minister Bambang Brodjonegoro said lower personal income tax will make it easier for taxpayers to comply with the tax law, while giving a boost to Indonesians' purchasing power. However, he declined to inform to what extent personal income tax will be cut as this is still being studied.

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  • What is the Problem with Tax Collection in Indonesia?

    What is the Problem with Tax Collection in Indonesia?

    A tax amnesty bill, which protects corruptors from prosecution and penalties when bringing overseas funds back to Indonesia and fulfill tax obligations, will soon be discussed among Indonesia's government and the House of Representatives (DPR). A tax pardon is expected to result in enhanced tax collection next year. According to the latest data from Indonesia's Finance Ministry's Tax Directorate General, the country only managed to collect IDR 686 trillion (approx. USD $51 billion), or 53 percent of its 2015 tax revenue target, in the period 1 January - 5 October 2015.

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  • Indonesian Government Revises Luxury Goods Tax to Boost Consumption

    Indonesian Government Revises Luxury Goods Tax to Boost Consumption

    In an attempt to boost the sluggish domestic economy by persuading Indonesian consumers to spend more, the central government of Indonesia will exempt several products from the luxury goods sales tax. By law, Indonesia has a tax (ranging between 10 and 50 percent) on goods that are categorized as luxury goods. These products include household items such as televisions, electronics, furniture, refrigerators, washing machines, water heaters as well as cars, motorcycles and property.

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  • Tax in Indonesia: Boosting Tax Collection through New Policies

    Tax in Indonesia: Boosting Tax Collection through New Policies

    A high positioned government official said that the government of Indonesia plans to cut corporate tax gradually from 25 percent currently to below 18 percent in a bid to make Indonesia a more lucrative place to conduct business. Luhut Panjaitan, President Joko Widodo’s Chief of Staff, confirmed that Widodo has already ordered this latest tax move. Over the past few weeks we have seen the announcement of a number of new tax policies as the government aims to boost tax collection by 30 percent in 2015.

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  • Palm Oil Update Indonesia: Indonesian CPO Reserves and Biodiesel

    Reserves of crude palm oil (CPO) in Indonesia may have declined for a second straight month in October on the back of drought and an increase in exports from Southeast Asia’s largest economy. The delayed impact of drought (which even managed to dry up several rivers in West Kalimantan in October) limited production of CPO in recent weeks. Meanwhile, exports have increased after Indonesia and Malaysia - the world’s two top palm oil producers - scrapped export taxes to boost demand for this commodity.

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  • Joko Widodo’s Mission to Enhance Tax Collection in Indonesia

    Joko Widodo’s Mission to Enhance Tax Collection in Indonesia

    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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  • Government and Parliament Agree on Indonesian Revised 2014 State Budget

    Government and Parliament Agree on Indonesian Revised 2014 State Budget

    In a plenary session of Indonesia’s House of Representatives (DPR) on Wednesday evening (18/06), the parliament approved the government’s proposed revised state budget of 2014 (RAPBN-P 2014). Prior to this approval, the revision had already been discussed for a month between the House of Representatives’ Budget Committee (Banggar) and the government. Almost all components of the 2014 State Budget have been revised from the government’s earlier assumptions.

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  • No Severe Impact Latest Indonesian Tax Scandal on Bank Central Asia

    No Severe Impact Latest Indonesian Tax Scandal on Bank Central Asia

    The tax crime case which involves Bank Central Asia (BCA), Indonesia's largest lender by market value and the second-largest bank by assets, is not expected to have a significant impact on the performance of the shares of BCA. Earlier this week, Hadi Poernomo (Director General of taxation from 2002 to 2004) was questioned by Indonesia's Corruption Eradication Commission (KPK) on allegations of accepting bribes in exchange for tax exemptions - worth of IDR 375 billion (USD $32.8 million) - granted to BCA.

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