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...
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...
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...
The Indonesian economy had a strong year in 2018, with growth of 5.2% marking the fastest pace in half a decade. This came on the back of robust domestic consumption, increased foreign investment and continuing efforts to reform policy and simplify investment procedures, and despite challenges including a falling rupiah, a trade imbalance and global political issues.
Special economic zones (SEZs) – known locally as Kawasan Ekonomi Khusus (KEK) – are the flagship industrial development programme of the government of Indonesia. The country is targeting 7% annual GDP growth through to 2019, and aims to reach upper-middle-income status by that year. One key factor in achieving this goal is accelerating the...
The government has aimed to enhance compliance of taxpayers and to expand the tax base in an effort to raise revenues. In 2017 the government’s successful tax amnesty programme ended, yielding the reporting of Rp4881trn ($368bn) worth of previously undisclosed assets, redemption money payments amounting to Rp114trn ($8.6bn) and other tax...
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