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Sri Mulyani shows promise with her sunset policy record: Economists
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Sri Mulyani Indrawati (center) talks to Brunei Finance Minister Pehin Dato Abd Rahman Ibrahim (left) and Malaysian Finance Minister Ahmad Husni Mohamad Hanadzla during the APEC Finance Ministers Meeting in Nusa Dua, Bali, on Sept. 20, 2013. (Associated Press/Firdia Lisnawati)
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conomists are optimistic that newly inaugurated Finance Minister Sri Mulyani Indrawati will be able to run the tax amnesty program optimally, as it takes a strong and transparent “manager” to make it successful.
Yose Rizal Damuri, an economist with the Centre for Strategic and International Studies (CSIS) said Sri Mulyani was experienced in dealing with tax amnesty, as she ran a sunset policy from January 2008 to February 2009 when she led the Finance Ministry.
The sunset policy erased the late tax payment administrative penalty for those that had registered for tax identification numbers (NPWP). With the policy, the government pocketed Rp 7.5 trillion (US $571.65 million) in tax revenue and recorded 1.8 million new taxpayers.
"After she left, the same program launched in 2015 was not as successful. The tax amnesty will be a bigger project for her. Aside from that, she has proven her ability to form a good fiscal strategy for Indonesia," Yose told thejakartapost.com on Wednesday in Jakarta.
The main concern for her, he continued, would be political pressure, such as the confrontation with several Golkar Party elites from 2009 until her resignation in May 2010. He expected Golkar, which has joined the Cabinet, to support the tax amnesty program.
Senior economist Christianto Wibisono also supported Sri Mulyani's appointment, as the tax amnesty program is in line with her vision delivered in a speech in Singapore in 2013 about Indonesian assets parked offshore.
"I met her on July 6 during an Idul Fitri gathering at Budi Bowoleksono's [Indonesia's ambassador to the US] house in Washington and I told her about that, 'You should help our President to make your speech come true'. Now it is the time for her to show her brainpower," Christianto said. (ags)
