The Jakarta Post
President Joko "Jokowi" Widodo thanked on Wednesday the House of Representatives for approving a regulation in lieu of law (Perppu) on financial information access for taxation purposes, affirming Indonesia’s commitment to the Automatic Exchange of Information (AEOI).
In his state of the nation address on Wednesday, Jokowi said the new policy would help strengthen the country’s taxation system.
"We are optimistic that with the law, Indonesia's state budget will be sturdier because its strength sources directly from the people and each penny of it is used for their interests," said the President.Read also: The financial disclosure law passes: What’s next?
With the approval of the Perppu, Indonesia is ready to join more than 100 countries that have signed the AEOI, next year, the President added.
Indonesia, the largest economy in Southeast Asia, is struggling to widen its tax base to achieve its tax revenue target of Rp 1.28 quadrillion (US$96 billion) this year.
The country's tax ratio stands at around 11 percent of the gross domestic product (GDP), relatively low compared to its peers. (bbn)