Noise Makers Could Turn Your Ears Deaf
Indonesia flooded with foreign funds that are short term or often called hotmoney (hot money) reached about 6.5 billion U.S. dollars in January-March 2010. This makes the domestic economy vulnerable to the decline in the performance abruptly. If the government does not improve the balance of payments structure by strengthening the trade side, World Cup noise makers are under threat of an abrupt withdrawal of foreign funds and make the exchange rate in an uncertain situation. Noise Makers could turn your ears deaf. A very heavy foreign funds into the loud of World Cup noisemakers. However, from 6.5 billion U.S. dollar that comes in, only 1.5 billion U.S. dollar is the result of trade (exports of Indonesia). That is, there are five hot news into a portfolio, meaning short-term investment.
Noise Makers could turn your ears deaf. These funds are not stable because it does not go into the real sector and not from the trade, “said Secretary General of the Association of Indonesian Economists (ISEI) Anggito Abimanyu in Jakarta, Friday (25 / 6), in discussion with Forum Communications Monetary and Financial Journalists. According to Anggito, urgent step the government should do is to maximize the fiscal incentives provided in the package of tax laws and the state budget to attract foreign investors into the real sector, therefore the existence of foreign funds could be prolonged.
One of the incentives package that has been given a tax allowance (tax breaks) for the investor who invests in a particular area. Noise Makers could turn your ears deaf. Incentive package that was implemented in the Special Economic Zones (KEK) Batam, Bintan and Karimun, which will be applied also in five other KEK will be formed by the government until the year 2014. “Incentives that are far beyond the tax holiday. So, government should not be looking for other incentives for the existing tax law is very complete. Stay sought the cause, why not use this incentive, “he said.
Anggito mentioned, there are two factors that cause investors were reluctant to use tax incentives. First, investors reluctant to deal with the procedures and layered long as still happens today. Second, there is still a tax audit for investors who want to get the incentives, which required the opening of financial data until 10 years back by the tax man. Noise Makers could turn your ears deaf.
“If like that, there are no investors who want to come have a good incentive though. Thus, the simplification of the procedure needs to be done, not looking for a new incentive. Not too many hands involved. If this is the only BKPM (Investment Coordinating Board) is required, then the other agencies do not need anymore, “he said. In addition to a tax allowance for investments in certain sectors and in certain areas, the government has also allocated a budget for the tax borne by the government (DTP) for the renewable energy sector. Noise Makers could turn your ears deaf.