He had written to various government agencies, including the Directorate General of Taxation (DGT), for an explanation, but his grievance fell on deaf ears and hence his decision to quit the business. The day after his Facebook post, the DGT issued a press statement saying that writers, like other professionals, are actually eligible for special treatment.

But why did it take so long for the DGT to give a definite answer to this issue?

Any decision regarding tax policy necessarily requires careful consideration, and that takes time. However, the Tere case, as one of many examples, might indicate a rather worrying trend. In July, the DGT exempted sugar from value added tax (VAT) only after industry leaders met with the tax office chief. The meeting itself was held after sugar groups staged protests.

More recently, the securitization of PT Jasa Marga toll road company was exempted from VAT after the CEO of the toll road operator complained to President Joko Widodo in a very public setting: during an event where the media was present.

Apparently public pressure or media attention is a very important factor on whether a tax policy question will be addressed in a timely and definite fashion.

Bowing to public pressure indicates that the government is willing to listen to the public, to acknowledge that competing perspectives are possible, even preferable. But is this the appropriate way to govern: by waiting for the public to voice their concerns and dissatisfactions openly and then rushing to calm the waters and issue belated official pronouncements?

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