Category: Trading

The government will continue to reform taxation by bringing about improvements in its administration, human resources, and the taxation directorate general (DJP), Finance Minister Sri Mulyani Indrawati stated.

“Despite the presence of unprincipled tax officials and officers, it is our duty to continue to make corrections. This is since taxes are synonymous with the public’s trust in the state,” Indrawati noted during a webinar on “2021 Speech Tax” held virtually here on Wednesday.

Through taxation reform, the minister expressed keenness to work hand-in-hand with the community for edifying and disseminating information pertaining to the importance of taxation for the young generation. “The education of state administration, citizenship, and love for our own country must be in one breath, with the obligation to pay taxes since it is the most consistent reflection of the patriotic sense and most capable of safeguarding common interests,” she highlighted.

The minister noted that the young generation should understand several aspects, including how to manage the country with taxes while adding that they will face challenges not only posed by the COVID-19 pandemic but also those arising from globalization, digital technology, and climate change.

“Hence, in the tax awareness inclusive program, I would like to invite the young generation to participate in understanding and protecting our own country through tax awareness,” she pointed out. The minister also thanked all stakeholders for having assisted in disseminating information pertaining to taxation, particularly to the young generation.

She specially expressed gratitude to the Ministry of Research, Technology, Education, and Culture for incorporating tax-related subjects into the educational curriculum.

Indrawati also lauded the DJP for organizing a tax education game design competition that is expected to cover more millennials, who are currently still young to learn about taxes.

Source: Antara News

The Indonesian Financial Transaction Reports and Analysis Centre (PPATK) and Indonesian Migrant Workers Protection Agency (BP2MI) remain committed to synergizing and collaborating to protect migrant workers and address issues pertaining to illegal migrant workers.

The commitment was made as BP2MI officials, led by BP2MI Head Benny Rhamdani, visited the PPATK office in Jakarta on Tuesday. BP2MI officials were received by PPATK Head Dian Ediana Rae and other PPATK officials.

“PPATK and BP2MI have agreed to formalize our collaboration through a memorandum of understanding (MoU) regulating information exchange, training, knowledge sharing, and other collaborations,” Rae stated.

Rae reiterated the PPATK’s concern over crimes against humanity, such as human trafficking, people smuggling, and modern slavery, while adding that cooperation with BP2MI will confirm PPATK’s role to address those issues.

“Our cooperation with BP2MI will enhance the Indonesian government’s efforts to protect Indonesian migrant workers,” he noted. Despite the 2021 annual national risk assessment that rated money laundering on the people smuggling crime potential as low, the PPATK would stay vigilant to investigate and suppress such crimes that often involve international criminal networks, Rae stated.

He noted that money laundering practices through cash transfer or cross-border cash-carrying methods were often committed by migrant workers or criminal syndicates that deployed them.

Meanwhile, BP2MI Head Benny Ramdhani emphasized the criticality of protecting migrant workers, as they are the second main contributor to foreign exchange income in Indonesia after the natural oil and gas industry, thereby deemed essential for the national economy.

He noted that human trafficking was an extraordinary crime, and public participation was necessary to crack down on criminal syndicates. He also cited internal research that found human trafficking crime as the capital source for criminals.

“Criminal syndicates that helped migrant workers illegally could earn profit of up to Rp40 million (around US$2,800) while spending only Rp20 million (around US$1,400) for other expenses,” Ramdhani noted.

Source: Antara News

House of Representatives’ (DPR RI’s) Commission II member Guspardi Gaus believes that the proposed amendment to the 1945 National Constitution to include the state policy guidelines (PPHN) was not urgent and should be postponed.

He reminded parliament members to prioritize the handling of COVID-19 and focus on bringing about economic recovery rather than deliberating on the constitutional amendment.

“We should prevent the public from labelling parliament members as opportunistic because of our intent to amend the Constitution amid the COVID-19 pandemic and increasing economic pressure,” Gaus stated in Jakarta, Wednesday.

The proposed constitutional amendment should be conducted in a meticulous manner, with the public’s aspirations and suggestions being taken into account to ensure that the amendment would be beneficial to the people, according to Gaus.

“Our Constitution is open for amendment, but we need to remember that it should be conducted following a comprehensive and meticulous study with its intention and justification clearly indicated,” he explained. He called on members of parliament (MPs) to be alert, as the public was concerned that other constitutional articles might be amended, especially those regarding presidential term limits.

According to Gaus, the constitutional amendment to include the PPHN was unnecessary, as the parliament had enacted a law on the long-term national development plan with a similar function as the PPHN.

“Law No. 17 of 2007 on the Long-term National Development Plan is currently under evaluation by the National Development Planning Board deliberating the implementation plan for the 2025-2050 period. This law has detailed goals and targets for Indonesia’s development and is more concrete than the PPHN,” he expounded.

The proposed amendment is yet to be endorsed by most parliamentary fractions as majority of the factions opined that Law No. 17 of 2007 had sufficed the need for a long-term development plan, he noted.

Source: Antara News

Bank Indonesia Governor Perry Warjiyo reported that inflation was maintained low in July 2021 in almost all regions in Indonesia and nationally recorded at 1.52 percent as compared to the corresponding period in 2020.

“This condition is in line with maintained inflation expectations and stability of the rupiah exchange rate, weak demand, and the availability of supply,” Warjiyo stated at the 2021 National Coordination Meeting for Inflation Control here on Wednesday.

The governor estimates that inflation in 2021 and 2022 will remain stable between two and four percent. However, Warjiyo also estimates the potential risk of rising inflation in 2022 that should be prevented in accordance with increasing domestic demand and rising global commodity prices.

Warjiyo lauded the Central Inflation Control Team (TPIP) and Regional Inflation Control Team (TPID) for the close synergy in realizing price stability, so that the synergistic efforts support Indonesia’s economic recovery efforts and help to boost the people’s welfare.

“We at Bank Indonesia remain fully committed to continuing to synergize with the government for recovery of the national economy,” the governor stated.

To this end, he emphasized that all central bank policies, including monetary, macroprudential, and the payment system, will be deployed to support economic growth or current pro-growth efforts.

Source: Antara News

Jakarta (ANTARA) – State-owned Enterprises (SOE) Minister Erick Thohir made assurance of the implementation of the SOE program related to job creation and new entrepreneurs at the novice level to help the public and MSMEs sector.

Thohir emphasized that the Indonesian economy must be balanced. The minister has continued to oversee and monitor the implementation of several programs for the past few months as the creation of new jobs has become increasingly difficult in the wake of the COVID-19 pandemic.

“Hence, pertaining to public services and corporations, we implement two programs that must also be ensured, specifically job creation and new entrepreneurs at the beginner level, not at the top,” Thohir stated at the launch of the BUMN Muda Mentorship Program on Wednesday.

The minister also expressed gratitude for the commitment of ultra-micro holdings that succeeded in collaborating and letting go of their ego and ensuring that the Mekaar program became a synergistic effort to reduce the cost of funds for ensuring more affordable instalments for 10.1 million customers of the program.

The Prosperous Family Economic Development (Mekaar) Program from PT Permodalan Nasional Madani (PNM) is immensely helpful for people at the grassroots level, who are currently facing difficulties in finding work.

“I have also checked how the Pertamina’s Pertashop Program is working and how many young and regional entrepreneurs also get the opportunity to do business,” the minister stated.

Source: Antara News

The current stability in food prices should be used to strengthen micro, small, and medium enterprises (MSMEs) in the food sector, Governor of Bank Indonesia (BI), Perry Warijyo, has said.

“We deem that the integrated effort to strengthen the role of food MSMEs in the economic ecosystem accompanied with the utilization of digital technology adaptation should be expanded from upstream to downstream, including a broader market access for food MSMEs,” he added.

During the 2021 Inflation Control Coordination Meeting here on Wednesday, he affirmed BI’s commitment to work with the government for national economic recovery.

This would effectively mean that all of BI’s policies will be directed toward supporting growth, he said. In terms of MSME transformation, including food MSMEs, BI has continued to strengthen services at its central office and 46 regional offices in Indonesia, he informed.

“Along with the head of the Financial Services Authority (OJK), we will continue clustering to strengthen the economic scale, improving the capacity of financial and marketing production, and expanding funding access,” Warjiyo stressed.

In addition, BI will continue to digitize the payment system so that MSMEs can enter the national digital financial economic ecosystem, support the Proud of Indonesian Products National Movement, and promote their products in other countries, he said. The BI Governor said he is optimistic that the food MSME transformation can boost their role in the local, national, and global supply chain through clusterization, expansion of capacity, and digitalization.

Hence, BI, along with the central and regional government, as well as strategic partners, will continue to collaborate and develop MSMEs’ business model in an integrated manner from upstream to downstream, he added.

“To the point where MSMEs can penetrate and expand their export market, including boosting the role of export aggregator that has utilized digital platforms as a connector with the international market,” Warjiyo remarked.

Source: Antara News

Vice President Ma’ruf Amin highlighted the importance of ensuring that Micro, Small, and Medium Enterprises (MSMEs) engaged in the halal industry sector receive strong support to strengthen the export market.

“MSMEs in the halal industry should be supported to meet the needs of the domestic and export markets in terms of the quantity and quality of the products,” Amin stated at the launch of the Synergy for the Acceleration of the Development of Halal Industry MSMEs on Wednesday.

The form of support for MSMEs in the halal industry can be offered through strong synergy and collaboration to expedite the development of MSMEs. In addition, various related stakeholders must focus on scaling up MSMEs in the halal industry.

“Several parties are paying great attention to MSMEs as a form of capital that must be optimized. Several initiatives have been taken by various parties to help MSMEs scale up,” he pointed out at the event was organized by the National Committee for Islamic Economy and Finance (KNEKS) virtually.

Amin cited the example of support for MSMEs in the halal industry in terms of funds and financing from Islamic banks, Revolving Fund Management Institutions (LPDB), sharia microfinance institutions (LKM), sharia people’s business loans (KUR), sharia shares, and Islamic fintech financing. “If MSMEs in the halal industry need to increase sales, then they can cooperate with digital marketing service providers. Likewise, in order to improve the quality of the company’s operations, there are several digital providers that are ready to help MSMEs,” Amin remarked.

Hence, the Vice President is optimistic that the Synergy for the Acceleration of Halal Industry MSME Development event would facilitate harmonization of MSMEs and halal industry businesses in Indonesia to create an ecosystem with mutual benefits.

Development of MSMEs in the halal industry is also an important part in realizing Indonesia’s vision as a world center for halal producers.

The aspiration to become a halal producer must be realized by increasing the capacity, so that MSMEs in the halal industry in Indonesia can become part of the global halal value chain.

“Indonesia is expected to not only become a market for halal products but also to become a producer of halal products that can export halal products all around the world,” Amin emphasized.

Source: Antara News

Indonesia’s economy clocked 7.07 percent year-on-year growth in the second quarter of 2021, surpassing Vietnam and South Korea, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said.

This growth recorded in the second quarter is the highest Indonesia has achieved since the 2008 sub-prime mortgage crisis, Hartarto remarked at the HSBC Summit, accessed from here on Wednesday.

Indonesia’s economic growth in the second quarter of 2021 surpassed South Korea’s 5.9-percent growth and Vietnam’s 6.6-percent growth, he pointed out.

The coordinating minister attributed the government’s efforts towards stemming the spread of COVID-19 as the key factor in the acceleration of Indonesia’s economic recovery in the second quarter of 2021. “Indonesia’s economic growth is also driven by the growth of household consumption in the second quarter of 2021 that has reached 5.9 percent (yoy),” he added.

In addition, Hartarto highlighted that domestic demand has continued to rise since industrial activity has recovered with an increase in production capacity.

As a result, investment in the second quarter of 2021 has risen by 7.54 percent (yoy), he said.

In terms of external factors, global demand has played a role in accelerating the nation’s economic recovery, Hartarto opined. “Indonesia’s economic growth is also driven by the growth of household consumption in the second quarter of 2021 that has reached 5.9 percent (yoy),” he added.

In addition, Hartarto highlighted that domestic demand has continued to rise since industrial activity has recovered with an increase in production capacity.

As a result, investment in the second quarter of 2021 has risen by 7.54 percent (yoy), he said.

In terms of external factors, global demand has played a role in accelerating the nation’s economic recovery, Hartarto opined.

Source: Antara News