Tuesday, April 19, 2016

THE EFFECT OF PANAMA PAPERS TO DEVELOPMENT IN INDONESIA

 
                                                        Panama city

Before Panama papers blew up, Indonesian Government had been collected the list of citizen who saved their money abroad. In order to invite them to repatriate the fund back home, Government and Parliament offered TAX AMNESTY. Forgiven the past if they save it in Indonesia and start to pay special tax to help National budget.

\Kebut Proyek Tol Sumatera, Tiga Menteri ini Rapatkan Barisan\
Trans Sumatera toll road

Fortunately in the same time Panama papers blew up and many Indonesian companies and some politicians included in the list. Most of them have been in the list of Finance department.
Now the right time to push them to repatriate their money back home.


Fast train proto type

Potentially the fund would back home approximately Rp. 1000 trillions  or equivalent US $ 76.923 billion. Why they willing to transfer their money home ? There are two main reason. First, they worry if the Government will take action to their business in Indonesia later. Since the new Government under President Jokowi were relatively clean, unable to bribe. Second, there are feasible Investment in Indonesia.

Recently Infrastructure development across Indonesia needed a huge amount of fund. For instance Trans Sumatra toll road from North to South. Fast train Jakarta - Bandung. Trans Papua road from East to West, 4.000 kilometers. Train in Sulawesi island. Toll road in Kalimantan, many harbors, airports, damns and many more.

The new Government very serious in Infrastructure project in order to reduce logistic cost between region, especially between the West part and East part of Indonesia. Later on in the near future, inter region will be interconnected. Either by sea, road and by air.

Trans papua, 4.000 kilometer

Thanks to reporter around the World, including Indonesian magazine TEMPO to print the name of citizen who avoid pay tax. Hopefully the money will coming soon, may help economic growth of Indonesia.



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