JAKARTA (Yosefardi) – President Joko Widodo expressed Indonesia’s support to the G20 to implement international tax cooperation, in the form of erosion and profit shifting based. This was done at the G20 leaders meeting in Antalya, Turkey last weekend.
“The G20 reaffirmed its commitment to continue the reform of global financial regulation, particularly to address the illegal practice of international taxation through the implementation of based erosion and profit-shifting action plans ,” said Minister of Finance Bambang P.S. Brodjonegoro.
By having this cooperation, the practice of transfer pricing which is very harmful, especially for developed countries and emerging countries, in the form of reduced tax revenue that should be accepted by these countries, will not occurred in the future.
In addition, the implementation of Automatic Exchange of Information (tax data or financial sector) that will be started in 2017, is expected to be initial improvement of the possibility of tax fraud or assets concealment that could become the tax object itself. “It is also an implementation of anti-corruption action plan according to the principles of integrity and transparency,” added the minister.
President Joko Widodo also expressed his commitment to continue to contribute to global efforts aiming at improving the economic growth of 2% until 2018. Not merely boosting the growth, but it should have good quality.
“The G20 leaders have committed to support inclusive and strong economic growth through action joint action,” said Bambang.
According to the President, the policy packages will be the ultimate key of the Indonesian economy to stimulate growth, encourage investment and increase purchasing power.