OECD pushes Indonesia on tax reform
TAX REFORM is among the necessary factors highlighted by the Organisation for Economic Cooperation and Development for the government to boost the economy in the long term, a senior minister has acknowledged.
Coordinating Economic Minister Darmin Nasution said the OECD was concerned about low government spending in Indonesia due to limited state revenue.
The low tax ratio in Indonesia compared to other countries is among the country’s structural fiscal problems.
“They recommend that it’s important for Indonesia to carry out tax reform.
“They know we’re running a tax amnesty programme and it could be a basis to improve the taxation system,” he said after a meeting between President Joko Widodo and OECD secretary-general Angel Gurra at the State Palace in Jakarta on Monday.
The OECD also called for the improvement of IT for taxation administration to support tax reform.
During the meeting, the president elaborated on several government efforts.
“The president also explained that Indonesia is currently preparing and encouraging vocational education. The president has said it will be a massive programme in the future,” he said.
Gurra will launch the OECD-Indonesia Joint Work Programme for 2017-18 while in Jakarta, along with the 2016 Economic Survey of Indonesia and the 2016 Open Government Review of Indonesia.
Finance Minister Sri Mulyani Indrawati and National Development Planning Board head Bambang Brodjonegoro are scheduled to attend the event.
