JAKARTA. By 6 September 2016 or two months after government launch tax amnesty, the participation of conglomerates and net worth individuals in the program is still lower than it is expected. 

As of 6 September 2016, of totalRp 246 trillion of declared assets, government just collected Rp 5.2 trillion of redemption fees. The number is only 3.2% of IDR165 trillion of revenue target from tax amnesty. 

Until 5 September 2016, tax amnesty program has reached 31,332 taxpayers, mostly small taxpayers with 31,629 asset declaration letters (SPH) received. 

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The latest data show that 78% or Rp 192 trillion of Rp 246 trillion declared assets are from local assets declared. Meanwhile, repatriated assets just amounted Rp 13.9 trillion or only  5.6% of total declared assets, whereas government is actually eyeing repatriated assets as the main target of tax amnesty program. 

Director General of Taxation Keun Dwijugiasteadi on Tuesday (6/9) admitted that collected tax amnesty revenues are still far from target, since most of the tax amnesty participants are small taxpayers. Even there was a participant who paid only Rp 2,000 of redemption fees. However, Ken ensured that there was a conglomerate joined tax amnesty and paid Rp 286.26 billion of redemption fees. In addition to the conglomerate, there was also a private tax payer declared overseas assets and paid IDR59.88 billion of ransom. 

Ken said that most of overseas assets declared and repatriated are from Indonesian citizens (WNI) who live in Singapore. As of 5 Septemner 2016. total overseas assets declared by WNI in Singapore amounted Rp 36.7 trillion, while repatriated assets only reached Rp 6.27 trillion. 

According to Economist from CORE Indonesia Akhmad Akbar Susanto, government will be struggling to meet the tax amnesty target due to lack of preparation. However, Director of State Budget Formulation A. Kunta Wibawa Dasa Nugraha is optimistic that tax amnesty will be successful despite the achievements of the program are still far than expected during the first three month of the implementation. (Translator: Muhammad Farid)