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					III. TAXES
                                                                                                                                                   RESPONSIBLE
     POLICY                     PROGRAM                              MEASURES                             OUTPUT                   TIME TARGET
                                                                                                                                                     PERSON

                                                           Re-evaluate the proposal to amend:
                                                           a. Law No. 16/2000 on Second
                                                               Amendment of Law No.
                                                               6/1983 on General Provisions
                    1. Improve the Laws on General
                                                               and Procedures of Tax;
                       Provisions and Procedures of Tax,                                      Decision regarding the status of
                                                           b. Law No.17/2000 on Third
                       Income Tax and Value Added Tax                                         the Draft Tax Laws that have           Mar-06      Minister of Finance
                                                               Amendment of Law No.
                       on Goods & Services and Sales                                          been submitted to Parliament
                                                               7/1983 on Income Tax;
                       Tax on Luxury Goods
                                                           c. Law No. 18/2000 on Second
A. Tax Incentives                                              Amendment on Value Added
   for investment                                              Tax on Goods & Services and
                                                               Sales Tax on Luxury Goods


                                                                                               PP [Government Regulation] in
                                                         Stipulate which business sectors      lieu of PP No. 148/2000 on
                    2. Income Tax facilities for certain and which regions are eligible for    Income Tax Facilities for Capital
                                                                                                                                     June -06    Minister of Finance
                       business sectors                  tax facilities according to Article   Investment in Certain Business
                                                         31A of the Law on Income Tax.         Sectors and or in Certain
                                                                                               Regions




                                                                                                                                                               -- 9 --
                                                                                                                                                         RESPONSIBLE
      POLICY                     PROGRAM                         MEASURES                               OUTPUT                   TIME TARGET
                                                                                                                                                           PERSON

                                                                                                 Decree of the Minister of
                                                      a.   Reduce the effective motor                Home Affairs with                                     Minister of
                                                                                                                                     May-06
                                                           vehicle tax for public transport   proposals/recommendations of                                Home Affairs
                                                           vehicles                               the Minister of Finance


    Tax Incentives 3. Reduce regional taxes that have b.   Reduce the street lighting tax     Revised PP No. 65 of the year
                                                                                                                                    June -06           Minister of Finance
    for investment    the potential to push up             for industry                                  2001
    (continued)       prices/service

                                                      c.   Settle the issue of regional
                                                           taxes, levies/retribution:
                                                                                        Regulation of           the related
                                                            Telecommunication Towers                                                May-06            Minister of Finance
                                                                                        Minister
                                                            Weigh Stations
                                                            Flow of goods


                                                      a.   Review tax rate on business
                                                           income and reduce the single Amendment of Law No. 7/1983
                                                                                                                              After the Draft Law is
                                                           tax for Entity Tax Subject from on Income Tax as lastly                                     Minister of Finance
                                                                                                                                     amended
B. Carrying out the                                        30% to 28% in the year 2007 amended by Law No. 7/2000
   "self-                                                  and to 25% in the year 2010
   assessment"        1. Review Income Tax rate
   system
   consistently                                                                         Regulation of the Director
                                                      b.   Review estimated net income General of Taxes on the Net
                                                                                                                                    June -06           Minister of Finance
                                                           as basis for withholding tax Income       Estimate   for
                                                                                        Withholding Tax




                                                                                                                                                                   -- 10 --
                                                                                                                                                      RESPONSIBLE
  POLICY                       PROGRAM                            MEASURES                           OUTPUT                   TIME TARGET
                                                                                                                                                        PERSON

                                                                                         Amendment of Law No. 6 of the
                   2. Review regulations regarding Allow a relaxation of time limits for year  1983     on    General
                                                                                                                              After the Law is
                      monthly tax payments (pre- monthly payment of tax for certain Provisions and Tax Procedures                                   Minister of Finance
                                                                                                                                 amended
                      payment/ instalment)         taxpayers                             as amended in Law No. 16/
                                                                                         2000

Carrying out the
                                                        a. Carry out a Pilot Project to
"self-
                                                           establish a service desk for
assessment"
                                                           the community in the Tax The establishment of a service
system                                                                                                                            Dec-06            Minister of Finance
                                                           Office to provide information desk at all Regional Tax Offices
consistently
                                                           on how to file tax returns
(continued)        3. Improvement of tax services to
                                                           (SPT)
                      increase the people’s awareness
                      of the importance of paying tax
                                                        b. Socialize the amendments to
                                                                                                                            Immediately after the
                                                           the tax laws through websites,
                                                                                          Tax revenues increase               relevant Laws are     Minister of Finance
                                                           seminars,      and    various
                                                                                                                                  amended
                                                           publications




                                                                                                                                                                -- 11 --
                                                                                                                                                             RESPONSIBLE
     POLICY                       PROGRAM                             MEASURES                               OUTPUT                  TIME TARGET
                                                                                                                                                               PERSON

                                                                                                   Revised Law No. 8/1983 on
                                                           Cancel the 2% administration            Value Added Tax on goods and
                                                                                                                                   Immediately after the
                                                           penalty for submitting a tax invoice    services and Sales Tax on
                      1. Cancel the VAT penalty                                                                                      relevant Law is       Minister of Finance
                                                           without the identity of the buyer, so   Luxury Goods as several times
                                                                                                                                        amended
                                                           as to decrease business costs           amended lastly by Law No.
                                                                                                   18/2000


C. Revised Value                                                                                Revised Law No. 8/1983 on
   Added Tax                                                                                    Value Added Tax on goods and
                                                                                                                                   Immediately after the
   (VAT) to promote   2. Increase the competitiveness of   Apply a 0% tariff on certain service services and Sales Tax on
                                                                                                                                     relevant Law is       Minister of Finance
   exports               service exports                   exports to enhance export            Luxury Goods as several times
                                                                                                                                        amended
                                                                                                amended lastly by Law No.
                                                                                                18/2000


                                                           Change the VAT status for
                                                                                                                                    Immediately after
                      3. Increase the competitiveness of   (primary) agricultural products to Revised related Government
                                                                                                                                    draft PP consulted     Minister of Finance
                         (primary) agricultural products   become non-taxable so as to Regulation (PP)
                                                                                                                                     with Parliament
                                                           increase competitiveness




                                                                                                                                                                       -- 12 --
                                                                                                                                                          RESPONSIBLE
      POLICY                      PROGRAM                            MEASURES                            OUTPUT                   TIME TARGET
                                                                                                                                                            PERSON

                                                          Enhance Good Governance, in
                      1. Apply the Code of Ethics for Tax particular in connection with audit, Application in 31 Regional
                                                                                                                                      Dec-07
                         Officers/Tax Officials           objections, and correct application Offices throughout Indonesia                              Minister of Finance
D. Protecting the                                         of tax regulations
   rights of
   taxpayers
                                                           Improve the tax payment system,                                      Immediately after the
                                                                                           Revised Law No. 14/2002 on
                      2. Reform the Tax Payment System     amongst others during the                                              relevant Law is       Minister of Finance
                                                                                           Tax Jurisdiction
                                                           objection process                                                         amended


                                                           a.   Prepare decrees for tax
                                                                examinations              and
                                                                                              Decree of the Minister of                 2007            Minister of Finance
                                                                investigations    that    are
                                                                                              Finance
                                                                standardized and transparent.
                      1. Disclosure of Tax Audits and
                         Investigations
E. Promoting
                                                                                                 Up    Grading of Human
   transparency and                                        b.   Carry out training that involves
                                                                                                 Resources at the Directorate           2007            Minister of Finance
   disclosure                                                   the new tax audit method
                                                                                                 General of Taxes


                                                           Compile a Data Base and build a
                      2. Increasing the knowledge of the                                   Website and Call Centre that is
                                                           knowledge base of various tax                                              Mar-08            Minister of Finance
                         community regarding Taxes                                         complete and functioning
                                                           provisions




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