Indonesia has started its carbon tax regime through an emissions-based luxury tax on automotive sales. Moreover, all coal-fired power plants will soon be subject to the carbon tax. The government intends to apply it in more sectors by 2025.
Weekly Insights Archive
Costs overrun and cash deficiency risks overshadow the Jakarta-Bandung high-speed rail project during operations, forcing Government to intervene in funding. Such a decision has raised a warning over the potential long-term burden for the state budget.
"The government estimates that there are still many overseas assets worth hundreds of trillions to quadrillions of rupiahs unreported by taxpayers."
The Law on Tax Regulations Harmonization paved its way into the plenary, bringing a new tax regime that is less of exceptions; revenue-oriented tax crime settlement; and provide the basis for the second tax amnesty and carbon tax.
“Data and reports show the possibility of another COVID-19 wave.”
"Massive data breach repeatedly occurred from applications managed by government agencies. The government's seriousness in data protection is questionable."
The hundreds of companies, including major airlines, are trying to capitalize on the delivery service market. Their presence in the sector may trigger mergers, creating new market leaders.
The carbon tax implementation plan, set out in the Bill on General Tax Provisions and Procedures, invokes pros and cons. The refusal mainly came from entrepreneurs who complained about the potential production costs hike, leading to higher prices.
It is possible that the government and Bank Indonesia to keep sharing the fiscal burden for quite some time, even into years of economic recovery.
The COVID-19 pandemic is far from over. All countries, including Indonesia, are still struggling to deal with the global outbreak. Almost all sectors are affected, from health, social, economic, including business and employment sustainability.