ITR Global Tax 50 2022: Sri Mulyani Indrawati
Minister of finance, Indonesia
Sri Mulyani Indrawati continues to play a crucial role in the Indonesian government, but also in the international community. Indrawati chaired the G20 meetings on tax held in Bali, Indonesia on November 15 and 16 2022.
The Indonesian government is committed to introducing the OECD’s two-pillar solution in 2023 and Indrawati is overseeing work to introduce new tax rules including a 15% minimum corporate rate. However, Indrawati has already overseen landmark tax reforms in Indonesia.
Indrawati’s reforms include a carbon tax, a higher VAT rate, and a programme to report undisclosed assets from 2021 to bolster the Indonesian government’s revenues by 2023. By early 2022, the tax reforms had increased tax revenue by 59%, amounting to Rp109 trillion ($6.9 billion).
The VAT rate in Indonesia increased from 10% to 12% in October 2021, while goods and services are taxed at between 5% and 25%. Several VAT exemptions were phased out in 2022. The legislative package also includes a carbon tax at Rp75 for every kilo of carbon dioxide emitted, and an excise tax on all plastic products.
Indrawati has led the Ministry of Finance in Indonesia since she was appointed by President Joko Widodo in 2016. As Indonesia tries to reduce government debt, Indrawati may be the best steady hand for times of economic turbulence.