Tax & Business
From The Report: Indonesia 2019
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This chapter offers an overview of Indonesia’s tax system, focusing on the revision of the tax holiday facility; the introduction of the online single submission system; measures taken to improve financial inclusion, such as Regulation No. 13/POJK.02/2018, which supervises and regulates financial technology; revisions made to Article 22 Income Tax provisions in order to manage imports that could affect the strength of the rupiah; adjustments to Article 31D of the Income Tax Law for the mining sector; and measures to increase transparency, such as The Law on Financial Information Access for Tax Purposes. This chapter also contains a viewpoint from Sharly Rungkat, Partner, Deals Strategy, PwC Indonesia.

Articles from this Chapter

Overview

Maintaining stability: A comprehensive survey of tax rules and regulations
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Indonesia is continuing its efforts to promote foreign and domestic investment, capital accumulation, and the export of goods outside of energy and mineral resources. While a broad range of deregulatory measures have already been implemented, additional measures, such as tax facilities, are expected to be announced. It is anticipated that these measures will further enhance the investment climate. Current State The government has set the tax revenue target for 2018 at Rp1618.1trn ($11.5trn),…

Analysis

Evolved approach: Revision of tax holiday rules stimulates investment and imports
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Indonesia’s GDP growth for the first half of 2018 was estimated at 5.7%. However, in line with other emerging markets, Indonesia was faced with the challenge of a sliding rupiah against the US dollar over the course of the year. To help curb negative effects that may arise from this, Indonesia has redoubled efforts to reduce imports. It is also encouraging foreign direct investment and stimulating domestic investment. Incentives To achieve this goal, the country has revised the rules…

Analysis

Digital enabler: Financial inclusion continues to expand under new regulations
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Financial inclusion is a key priority for Indonesia’s government. The country has made significant strides in expanding access to its unbanked population. According to the World Bank, the banked population has increased from 20% in 2011 to 49% in 2017. These improvements are the result of priorities that the state has set, with specific regard to the establishment of the National Council of Financial Inclusion. The council was set up in 2016 under Presidential Regulation No. 82 as part…

Viewpoint

Seizing opportunities: Sharly Rungkat, Partner, Deals Strategy, PwC, on growing financial access and the future of digital technologies
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Viewpoint: Sharly Rungkat Indonesia is currently at a pivotal juncture in terms of the development of both hard and soft infrastructure, which coincides with unprecedented positive consumer sentiment towards digital technologies. According to PwC’s “Global Entertainment and Media Outlook 2018-22” report, the number of mobile internet subscribers in Indonesia is set to grow from 103m in 2018 to 161m subscribers by 2022, with 77% of the population expected to be owning a smartphone device by…