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Jakarta Post

Finance Minister to take 'softer approach' on tax collection

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, January 2, 2018   /   02:59 pm
Finance Minister to take 'softer approach' on tax collection Finance Minister Sri Mulyani Indrawati (Antara/Puspa Perwitasari)

Finance Minister Sri Mulyani Indrawati has announced that the government will replace the infamous gijzeling policy -- taking taxpayers hostage until they had paid their taxes -- with a softer approach.

"Gijzeling is a method for collecting taxes, [and] not the target. We can implement a better approach that does not cause a lot of commotion and fear," she said on Tuesday at the Presidential Palace in Jakarta.

The hostage-taking approach was used frequently under the two-year tenure of the previous Director General of Taxation, Ken Dwijugiasteadi.

Read also: No day without taking tax evaders hostage: Top tax official

The use of gijzeling intensified in the few months before Ken’s tenure ended, with the former tax chief even saying that no day would pass without taking taxpayers hostage.

The controversial approach prompted protests from many businesspeople.

Sri Mulyani, in response to the protests, instructed Ken's successor, Robert Pakpahan, to take a softer approach.

"I agree with [a softer approach]. I have asked the new tax chief to watch and listen to the complaints from businesspeople," she said. (bbn)