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New bill sets stage for Prabowo’s planned state revenue agency
The promised state revenue agency would be responsible for boosting tax revenue to fund Prabowo's campaign promises.
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The House of Representatives' Legislation Body (Baleg) holds a meeting with representatives of the government in the Senayan legislative complex on Sep. 9, 2024, to revise the 2008 Ministry Law. (JP/Deni Ghifari)
T
he House of Representatives has taken steps to clear the way for president-elect Prabowo Subianto to establish his promised state revenue agency, which would be responsible for boosting tax revenue to fund his campaign promises.
These steps include the introduction of a new stipulation that would allow the government to set up a ministry or government agency based on its “sub-affairs”.
The rule is part of a bill revising the 2008 Ministry Law to remove legal limits on the number of cabinet ministries, which are currently capped at 34. Lawmakers are expected to pass the bill into law by the end of this month.
House Legislation Body (Baleg) member Achmad Baidowi told reporters on Monday that the move offered “flexibility” for future administrations so they could freely add or merge ministries with minimal restrictions.
The bill would also serve as legal foundation for the planned state revenue agency, he said.
In his presidential campaign, Prabowo stated his intention to spin off two state revenue arms under the Finance Ministry – the tax office and the customs and excise office – into a standalone revenue agency. He said the changes would allow the government to bring in more revenue.
The idea is not new, and has been considered by previous presidential administrations.
