DPR Seeks Deleting Access to Information Article from GPTP Draft Law

JAKARTA, DDTCNews – This morning, Wednesday (9/5), the parliament announced plans to delete the articles related to access to tax information. The tax authorities consider the removal of the provisions enshrined in the General Provisions and Tax Procedures (GPTP or Ketentuan Umum dan Tata Cara Perpajakan/KUP) Draft Law (Rancangan Undang-Undang/RUU in Indonesian) as a setback for Indonesia’s tax reforms.

DDTC tax observers highlight that the article on access to information to various agencies aligns with the concept of transparency and resolves feeble tax revenue performance.

Meanwhile, the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM in Indonesian) plans to ease requirements for investors in the digital economy or e-commerce sector. Such relaxation aims to boost the realisation of investments in the growing digital economy sector.

The following is the summary:

• The DGT Responds to Efforts to Delete the Access to Information Article:

Director of P2 Public Relations of the Directorate General of Taxes Hestu Yoga Saksama stated that the government is awaiting discussions with the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) concerning various issues under the GPTP Draft Law. According to him, if the deletion of the information disclosure article is included in the Issue Inventory List (Daftar Inventarisasi Masalah/DIM in Indonesian) of the GPTP Draft Law, in the foreseeable future. it will be responded to in a formal session or discussion with the House of Representatives.

• Deletion of the Access to Information Article Raises Concerns:

Head of DDTC Fiscal Research B. Bawono Kristiaji stated that the proposed deletion of Article 39 paragraph 4 of the GPTP Draft Law may distort information disclosure. The tax authority cannot enhance compliance, map potentials and carry out supervisory functions in the context of self-assessment sans data or information. Bawono fears that this will perpetuate existing issues in the current GPTP Law, i.e., limited access to financial information for taxation.

• Co-working Space Trend Prompts Adjustments to Investment Rules:

Head of BKPM Thomas T. Lembong elaborated that the ease of the requirements concerned is in the form of eliminating the company's permanent address requirement. This is in line with the growing trend of co-working spaces as a number of start-ups prefer co-working spaces, whereas the applicable rules require a fixed address. He highlighted that rigid regulations must be adjusted.

• Rupiah Weakens Beyond IDR14,000, Opportunity to Improve Trade Balance Deficit:

The rupiah continues to depreciate, standing at IDR14,036 per US dollar (Jisdor BI). Concerns arise over the control of the rupiah exchange rate beyond the IDR14,000 mark. Indonesian Vice President Jusuf Kalla is of the opinion that this weakening may serve as an opportunity to improve the trade balance deficit. According to him, while the weaker rupiah raises export proceeds, import prices soar. In the future, the deficit in exports and imports necessitates corrective measures.

• Technology Improvements and MSMEs Are Key to Indonesia’s Global Competitiveness:

Work is to be done before Indonesia pioneers in leading Southeast Asia in global competition. APEC Executive Director Alan Bollard noted that Indonesia's strength lies in its robust domestic demand and consumption. However, he highlighted that improvements in technology and MSME development are essential. (Amu)

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