President Joko "Jokowi" Widodo has signed a letter to officially start deliberations of the government’s omnibus bill on taxation in the House of Representatives, Finance Minister Sri Mulyani Indrawati said on Wednesday.
The letter will be submitted to the House of Representatives along with the bill.
“We will submit the Surpres [presidential letter] that has been signed by the President and meet with the House leaders soon,” said Sri Mulyani on the sidelines of an event in Jakarta.
The government expects the deliberations to start soon as the bill has been included in the 2020 National Legislation Program (Prolegnas), said the former World Bank managing director.
The Prolegnas lists four omnibus bills, including bills on job creation and taxation. If passed into law, the bills are expected to cut regulatory red tape to attract investment to help boost the country’s sluggish economic growth.
“We hope the omnibus bills will be submitted this week, depending on the House’s plenary session schedule and how the lawmakers complete the discussions of the bill on taxation,” Sri Mulyani said. She did not elaborate on whether the bill on job creation would also be submitted this week.
The government’s planned tax reforms in the omnibus bill on taxation include relaxing income tax for Indonesian and foreign expatriates as well as eliminating dividend taxes, lowering the corporate income tax and imposing a new digital economy tax.
Sri Mulyani and Coordinating Economic Minister Airlangga Hartarto are scheduled to meet with House leaders on Wednesday afternoon to discuss the deliberation process.