HSBC economist Su Sian Lim was seeking to draw attention to problem faced by Indonesia saying revenues from taxes and the oil and gas sector, fell short of expectation.
Speaking at an HSBC Economic Outlook 2016 titled "ASEAN Economic Community: Indonesia to Punch Above Its Weight, Lim said the tax amnesty bill proposed by the government could help offset the decline in state revenues from taxes and oil and gas sector.
Tax revenue fell short of target last year and the first quarter of this year on economic slowdown and income expected from oil and gas shrank on oil price fall ion the global market.
Parliamentary debate on the tax amnesty bill has been delayed and at least two factions, Gerindra and PKS have openly expressed opposition to the bill.
Lim, however, expressed optimism that country would fare better this year as a result of series of economic policy packages issued by the government that are expected to serve as a stimulus for growth.
"Since September 2015, the government has issued a 12 packages of economic stimulus, including tax and fiscal incentives, and deregulation," he noted.
In 1984, Indonesia issued tax amnesty , but not effectively implemented with minimum enthusiasm shown by tax payers.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
