Click here to read the entire 2020 Indonesia Special Focus guide
In 2019, President Joko Widodo presented his vision of what Indonesia will look like in 2045, announcing a solution that would see the country’s gross domestic product reach $7.3 trillion and a poverty rate near zero.
An independent PwC report suggests that Indonesia will become the world’s fourth most powerful economy by then, surpassing the likes of Japan, Germany and Brazil. The government realised that the key route to fulfilling such goals is to cut bureaucratic over-regulation and encourage international investment, which has led to the talk of ‘omnibus laws’ to transform the economy.
As Indonesia’s leaders guide the country towards advancing its macroeconomic operations, the demand for expert advice remains high. The unforeseen outbreak of COVID-19 means that authorities and taxpayers have had to manage spiralling expectations with another vital challenge.
Partnering with leading firms who are closest to the action, ITR brings you an exclusive insight into some of the most important developments from the Indonesian tax world.
The surge of work for tax advisors and litigation practitioners, especially in light of the challenges laid out by the ‘new normal’, is the subject of GNV Consulting’s article. The Indonesian government has moved swiftly to set strategies and deliver incentives to ensure continuity.
The article by DDTC discusses how the Directorate General of Taxes (DGT) finds itself in the precarious position of needing to commission extra audits, while trying to balance its own resources and capacity amid the economic disruption.
Meanwhile, the article from SF Consulting/Crowe Indonesia explores the complicated relationship between Indonesian tax authorities and tax courts. The two channels of dispute resolution reflect the characteristics of two different institutions, the executive and the judiciary.
The digital economy is increasingly intertwined with the traditional economy in Indonesia, with both direct and indirect tax targeted. RSM Indonesia’s article considers the impact of the digital taxation rules in Indonesia on multinational technology companies.
The reality of working in a virtual environment means that Indonesia is actively embracing technological innovation. The article from Suryani Suyanto & Associates looks at why businesses must take on a digital mindset and culture, while ensuring that compliance becomes a behaviour rather than just a function.
Alongside its economy, Indonesia’s tax world will go from strength to strength in the 2020s. We hope that you enjoy hearing from the tax experts leading the progression in our first Indonesia Special Focus.
