The government is set to crack down on tax evaders and money launderers, President Joko “Jokowi” Widodo having instructed the integration of forces in a bid to increase the country’s low tax receipts.
In a limited Cabinet meeting on Monday, Jokowi asked for the integration of the reporting and financial transaction analysis system and that of tax reporting and monitoring.
“Integration of the two systems is expected to help push up the country’s tax ratio to between 14 and 15 percent of GDP from the current 12.2 percent, widen the tax base and increase tax revenues.
The Finance Ministry has already collected data from thousands of recalcitrant Indonesian citizens who refuse to comply with regulations and stash their funds abroad, Bambang said.