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Jokowi to 2,000 mining businesspeople: Evade tax? We’ll catch you

  • N. Adri
    N. Adri

    The Jakarta Post

Jakarta | Tue, December 6, 2016 | 09:18 am
Jokowi to 2,000 mining businesspeople: Evade tax? We’ll catch you President Joko "Jokowi" Widodo delivers a speech about the tax amnesty before 2,000 business players in the mining and plantation industry in Balikpapan, East Kalimantan, on Dec. 5. (JP/N. Adri)

President Joko “Jokowi” Widodo said Monday in Balikpapan, East Kalimantan, before some 2,000 businesspeople involved in the mining and plantation industry that in 2018 countries would agree on information exchange regarding finances, so practices by businesses in parking their money abroad to evade tax would see them caught.

“All countries will be frank [on financial data],” he said at the Platinum Hotel in Balikpapan. With information exchange, he said, parking money abroad to evade tax would be impossible and perpetrators would have to pay taxes in full because there would be no amnesty next year. “After March 2017, [there will be] no mercy,” he said.

Jokowi’s signature tax amnesty reached its second phase on Oct. 1 and would run until Dec. 31.

Taxation Directorate General data show that in Kalimantan many businesspeople hold mineral and coal mining concessions, and permits to run oil and gas companies, and oil palm plantations.

There are 6,041 taxpayers in the mineral and coal mining industry but only 1,041 have joined the amnesty so far, with total payments reaching Rp 228.6 billion (US$17 million). From oil and gas there are 1,114 taxpayers but only 78 have applied with payments totaling Rp 40.8 billion.

Finance Minister Sri Mulyani Indrawati said from 1.3 million taxpayers in Kalimantan, only 23,000 had participated in the tax amnesty.

“Only 1.8 percent,” she said after Jokowi had delivered his speech.

Jokowi said he wanted to see a significant increase in tax compliance in Kalimantan. “I will check again later,” he added. (evi)

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