Recently, tax policies have burdened the public, whereas there are wiser options for state revenue..Jakarta (ANTARA) - Tax expert Gabriel Kurniawan believes Finance Minister Purbaya Yudhi Sadewa faces a significant task in convincing global investors while addressing challenges in Indonesia’s tax revenue.
In a statement on Tuesday, Kurniawan noted that former Finance Minister Sri Mulyani Indrawati had a strong track record as an economist and World Bank Managing Director, which earned international investor trust in Indonesia.
According to him, Sadewa, who has replaced Indrawati, must work to maintain that trust.
“Sadewa, as the new Finance Minister, needs to keep the business climate positive, including reassuring or rebuilding global investor confidence,” he explained.
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Sadewa took office at a time when state revenue faces considerable pressure. He has stated that he will not overhaul Indrawati’s fiscal policies but will focus on optimizing existing economic drivers.
However, Kurniawan argued that tax policies require evaluation.
“Recently, tax policies have burdened the public, whereas there are wiser options for state revenue,” he said.
For instance, he suggested the government raise the threshold for taxable entrepreneurs (PKP) rather than increasing the value-added tax rate.
He also proposed lowering corporate income tax rates (PPh Badan) while expanding the taxpayer base to foster a more competitive investment climate.
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Kurniawan expressed hope that fiscal policy under Sadewa’s leadership will reflect the needs of society.
“Hopefully, under the new Finance Minister, the Ministry of Finance and the Directorate General of Taxes can be more transparent and fair to all layers of society without being tied to political interests,” he added.
Earlier, Sadewa expressed confidence in his ability to serve as Finance Minister. He also pledged to increase Indonesia’s tax-to-GDP ratio, which has remained stagnant in recent years.
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Translator: Imamatul, Kenzu
Editor: M Razi Rahman
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