Government criticized for decision on bank account access

The government has been criticized for its decision over the amount of funds in a bank account that would make it subject to examination by tax officials, as it is feared the policy could lead to distrust in the banking system.

"The decision could lead to different public perceptions," Institute for Development of Economics and Finance (Indef) researcher Eko Listiyanto said during a press conference in Jakarta on Thursday.

He was referring to the government’s decision to revise its plan to examine financial data on the back of major outcry from micro, small and medium enterprises.

(Read also: Indonesia bows to outcry, revises tax examination plan)

With the revision, the Directorate General of Taxation is required to examine bank accounts with a minimum balance of Rp 1 billion (US$75,148.50), higher than the initial plan of Rp 200 million.

Eko also questioned how the government initially decided Rp 200 million as the figure that would be examined.  “There is no logical basis to mention Rp 200 million as to figure to be examined. The figure just came out of blue and it’s suddenly changed,” he added.

Bank customer may be weary of their account being accessed by tax officers, he added.

"If there is no third party fund, it will be difficult for the credits to grow to double digit,” said Eco, adding that high credit growth was needed for economic growth above 5 percent, as mentioned in the state budget. (bbn)