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Tax amnesty will take years to support the poor: BPS
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A woman walks along a railway track in a slum area of Jakarta. (Tempo/-)
T
he tax amnesty initiative is expected to help the government to alleviate poverty in Indonesia as it will grease the economy with more investment, according to the Central Statistics Agency (BPS).
Repatriated assets would be converted into investments and loans for the mid-high economic sectors, BPS Deputy Chief Statistician for Social Statistics Sairi Hasbullah said, adding that this would ultimately have an impact on those living below the poverty line.
The government has provided a scheme for small and medium enterprises (SMEs) to join the program but it is likely take four to five years for the trickle-down effect of the program to reach them, he continued.
"Tax amnesty will not immediately lead to more jobs or paychecks. After perpetual poverty reduction, we have reached a point where the poor in Indonesia now consist of seasonal unskilled labors both in rural and urban areas," he said at BPS office in Jakarta on Monday.
The economic machine will be oiled by the repatriated assets, especially in construction and consumption activities, Sairi acknowledged. Thus, it would open up job opportunities for labors in both sectors, he added.
“The factor currently having an impact on income increase among the poor is the infrastructure development and village fund. Significant job orders will be seen from it," he said. (ags)
