Tax revenues may reach Rp 1,000t target by 2013

The government will intensify efforts to achieve a tax revenue target of Rp 1,000 trillion (US$108 billion) by 2013, which will account for the larger part of state revenues, the Finance Ministry said.

The calculation of the Rp 1,000 trillion figure is based on an estimate of tax growth of 19.7 percent annually and an assumption that the economy will grow by 6.4 percent on average between 2010 and 2013 — Director General of Taxation M. Tjiptardjo said Monday in a seminar on “Dissecting the 2010 State Budget” at the ministry.

“The average natural growth of tax revenue in four years (2010-2013) is 12 percent. The average extra efforts that must be made in four years amount to 7.7 percent,” he said.

This year’s tax revenue is Rp 611.2 trillion, or 64.4 percent of the total state revenue of Rp 949.7 trillion, as stated in the 2010 state budget.

Tjiptardjo said there are four strategies to achieve the Rp 1,000 trillion target. Those include
continuing administrative reform at the Directorate General of Taxation; providing incentives to certain business sectors; continuing the directorate general’s program in mapping, profiling and benchmarking taxpayers; and continuing law enforcement against tax evaders.

Administrative reform includes improving infrastructure and human resources at the directorate general, he said.

He added that the government should provide incentives to sectors contributing significant tax revenue and business sectors with expansion potential such as mining, financial services, telecommunications, construction and agriculture.

At present, the sectors that contribute most to tax revenue include manufacturing; wholesaling and retailing; financial services, mining and drilling; transportation, warehousing and communications; construction and real estate.

He also said small- and medium-scale enterprises (SMEs) could be given incentives. “This sector is immune to volatility. I think it should be given incentives,” he said. Last year, the growth rate of taxes paid by SMEs was larger than that of big companies and this trend is likely to continue, he added.

Tjiptardjo said that the directorate general would continue to map, profile and benchmark business sectors to determine the amount of tax that should be paid by businesses. If there are tax evaders, the office will pursue them, he added.

Tax observer Darussalam of the University of Indonesia said the government should not put the burden on the directorate general alone to reach the target of Rp 1,000 trillion in tax revenue.

“We are talking about a system here, of which the Directorate General of Taxation is part,” he said.

Four other institutions and groups should be involved to help meet this target, he said.

These included the House of Representatives that endorses tax laws, the courts that
handle tax disputes, tax consultants and the tax ombudsman.

The government still relies on foreign debts and bond issuance to help finance the state budget.

This year alone, the government plans to raise up to Rp 175.06 trillion from the issuance of
bonds to plug the 2010 budget deficit which is expected to reach Rp 98.01 trillion.

In less than two months the government has successfully raised Rp 44.06 trillion or about 25 percent of its total bond issuance target. In the next few months, the government will sell more bonds either in the domestic or international market so as to raise more funds to help fill the budget deficit.

Government to sell second Samurai bonds in late April

The Indonesian government will launch in late April this year yen-denominated bonds worth about US$1.1 billion to help finance the state budget deficit, a senior Finance Ministry official has said.

Director General of Debt Management Rahmat Waluyanto said in Jakarta on Monday that proceeds from the second yen-denominated bonds would partly finance Indonesia’s 2010 budget deficit of Rp 98.01 trillion ($10.59 billion), equivalent to 1.6 percent of the country’s gross domestic product (GDP).

Speaking to reporters after a seminar on “Dissecting the 2010 State Budget” held by the Finance Ministry, Rahmat said that the bonds also called Samurai bonds would be the second set of yen-denominated bonds sold by the government.

The first Samurai bonds were issued in July last year, raising about ¥35 billion ($382.1 million). The 10-year bonds offers coupons with a yield of 2.73 percent a year.

As of Feb. 10 the government has issued Rp 44.68 trillion of bonds, or 25.54 percent of its Rp 175.06 trillion target for gross bond issuance in 2010.

The Japan Bank for International Cooperation is backing the sale of Indonesia’s Samurai bonds as part of standby loans worth $1.5 billion provided by Japan to help Indonesia to cope with the global financial crisis.

In addition, the government also plans to issue global Islamic bonds or sukuk, the amount of which has yet to be disclosed, before the fasting month in August, Rahmat said earlier. In April 2009 Indonesia’s first sale of international dollar-denominated sukuk was hugely oversubscribed with a total order of $4.7 billion, seven times more than the $650 million offered by the government.

Indonesia’s upgraded credit ratings by Moody’s Investors Service to Ba2 and by Fitch Ratings to BB+ will likely boost market confidence in Indonesia’s bonds. Standard & Poor’s also changed Indonesia’s outlook to positive.

The economy grew by 4.5 percent last year. The government estimates the economy will expand 5.5 percent this year. But the government might revise the 2010 budget deficit upward from 1.6 percent to 2.2 percent of GDP in order to allocate more funds for food and energy.

Editorial: Can’t speak English?

How can Indonesian officials, assigned to an overseas post by the state, be effective in promoting or protecting the interests of our country when they fail to meet the very basic requirement of proficiency in English? Such an official not only wastes state money, but also humiliates Indonesia, as they become a source of jokes among their foreign counterparts.

Amid allegations that several Foreign Ministry officials marked up the prices of airline tickets, Foreign Ministry secretary-general Imron Cotan revealed that several Indonesian attaches stationed at Indonesian embassies had such a poor grasp of English that they often avoided meetings with foreign counterparts.

“Every time their counterparts from the home government want to meet them, they freak out and seek ways to avoid the meetings,” said Imron, who will soon take his new post as Indonesian ambassador to China.

Imron indicated clearly which government departments (not the Foreign Ministry) the officials he was referring to were from, namely the ministries of trade, labor and transmigration, the Indonesian Military (TNI) and the Immigration Office.

During a visit to The Jakarta Post on Friday, Foreign Minister Marty Natalegawa played down Imron’s comments, arguing that we should avoid generalization. But the fact that the information came from a very senior diplomat could also mean that these problems are more complicated than just English speaking skills.

The appointment of attaches is often not based on professional considerations, as much as good political connections. Thus it is also highly likely that their incompetence is not limited to language skills, but other substantial areas also.

Unless the government undertakes comprehensive measures to ensure that only capable and professional officials are posted at our foreign offices, complaints similar to Imron’s will emerge again and again.

Many of Indonesia’s ambassadors also have trouble with English, but it is not just the monopoly of our own envoys. Not all foreign ambassadors here can speak English either, and they have the right to be flanked by interpreters.

In a meeting with about 200 diplomats from 119 Indonesian embassies and consulate generals around the globe, President Susilo Bambang Yudhoyono ordered diplomats to attract investors.

This was apart from their other main duties, including to protect Indonesians abroad.
However, there is little hope that the unqualified officials will meet this target.

What about our career diplomats? There is no doubt at all about their English proficiency, because the ministry has set high standards for diplomats. Many of them studied at top universities and have brilliant academic achievements behind them. Diplomats assigned to major United Nations offices are also supposed to have mastered other major languages, such as French.

By comparison, let us look for a moment at the skills of foreign diplomats here. It is not difficult to find diplomats in Jakarta who are fluent in Indonesian. Many of the diplomats from Japan, South Korea, Russia and China have mastered Indonesian as well as English. These extra capabilities are very helpful for them in communicating with Indonesian people.

The Foreign Ministry fully realizes the need for such an advantage, and has also recruited top young graduates from arts faculties including Chinese studies. However, such efforts are still in very preliminary stages.

What is worse, the problems faced by Indonesian officials abroad do not just revolve around their language abilities, but also in their capacities and willingness to act as representatives of our country.

DPD optimistic about becoming senate by 2014

The House of Regional Representatives (DPD) expressed its optimism about a further amendment to the 1945 Constitution by 2014 to give full authority to it to become recognized as a senate.

“I am optimistic there will be an amendment to the 1945 Constitution by 2014, the last year the nation will be led by a first generation pro-reform national leader. After this, the country is expected to be led by a leader who will be the result of the reform movement and to implement a two-tier parliamentary system,” House of Regional Representatives Speaker Irman Gusman said in a discussion and visit to The Jakarta Post on Monday.

Accompanying Irman during the visit were DPD Deputy Speaker GKR Hemas, deputy chairman of the DPD’s legislative committee Parlindungan Purba, Bahar Buasan of Bangka Belitung and DPD secretary-general Siti Nurbaya.

The constitution has been amended four times between 1999 and 2002, recognizing the existence of DPD as a law-making body with limited power. The constitution allows it to propose to the House of Representatives bills related to regions, fiscal balance, natural resources, religion and education and the 2003 Law on the composition of the People’s Consultative Assembly (MPR), DPR and DPD, limiting its powers only to giving legal considerations on all bills and to have limited hearings with the executive body.

Irman said further that despite these limited powers, the DPD continued lobbying and strengthening its role on the national political stage to convince all sides, mainly the government and the House of Representatives, on the necessity of amending the constitution to empower the new state institution and to make it equal to the House in ensuring a two-tier (bicameral) parliamentary system with its check-and-balance mechanisms.

Following intense lobbying with political parties, the DPD has been allowed not only to give legal considerations but also to deliberate all bills related to regions, fiscal balance, education and religion as laid down by the 2009 Law on the MPR, DPR and DPD.

“With an [additional] amendment by 2014, the Constitution is expected to lay down the DPD’s full powers in its legislative, budgetary and control functions, making it as powerful as the DPR,” said Irman.

He also said the DPD has also reached agreements with the MPR, DPR and the executive body which implicitly accepted the DPD as being of equal status to them.

He cited for instance the agreements on annual joint sessions to hear presidential speeches and on MPR, DPR and DPD leadership meetings and on the master plans for the parliamentary buildings.

Hemas said she and 28 other regional representatives have formed a caucus with women legislators from the DPR to fight for gender equality and women-related issues, including on health and poverty.

“The caucus will continue fighting for the proposed 30 percent quota for legislative candidates for women in the next legislative elections,” she said citing an example.

Irman, Hemas and Parlindungan said the DPD was committed to promoting pluralism and local cultures while all 132 will-be senators from the 33 provinces supported one another in practicing pluralism.

Asked about the emergence of many local sharia bylaws, Irman said the Home Ministry should review them to prevent undermining the pluralist spirit of the people.

“The Home Ministry must review the sharia bylaws or bring them to the Supreme Court for judicial review,” said Irman.

Parlindungan said that besides a law center, the DPD also had its legislative body to review contentious laws and bylaws and to ensure harmony with the constitution which guaranteed the freedom of religion.

China suspected behind radio closure

The Communications and Information Technology Ministry has told a private radio station to halt its news broadcasts because it is deemed to have no broadcasting license and is interfering with other radio frequencies.

However, the Legal Aid Foundation (LBH) suspected the action against Radio Era Baru was made after political pressure from the Chinese Embassy in Jakarta.

It is the latest in a string of warnings against the station, which promotes Falun Gong, a
system of beliefs and practices that are banned in China.

In 2007, the Indonesian Broadcasting Commission (KPID) closely monitored the radio station
after the embassy reported the station had allegedly aired political campaigns that might harm relations between the two countries.

Early last year, the government rejected the extension of the station’s broadcasting license, a move that was also suspected to have been linked with the embassy’s influence.

On Monday, station director Raymond Tan and Soleh Ali from LBH Press held a media
conference to announce the ministry’s warning administered to the station through the government radio monitoring body.

“We have been warned four times by the monitoring body to stop broadcasting. The Chinese government is behind the effort to close our radio station because we are considered to continuously air news about Falun Gong. We air news [on Falun Gong] because it is newsworthy,” Raymond, a follower of Falun Gong, said.

Raymond said he and some partners founded the radio station with an investment of Rp 1 billion.

He denied that the station, which currently employs 12 staff, was funded by the Falun Gong
organization.

Lawyer Soleh said his client had filed against the cancellation of the broadcasting license to civilian court in 2008. They lost and are now appealing the case to the Supreme Court.

“The legal proceeding of this case is ongoing. The Communications and IT Ministry have no reason to tell us to stop broadcasting. This is a form of press freedom suppression. News about persecution of Falun Gong in China is just [as relevant as] Iraq.

“We request the government practice a clear stance against foreign intervention. Reject Chinese pressure to close this radio station, whatever the reason,” he said.

He said they had written proof about Chinese interference in the affair, for fear it might damage relations between the two countries.

The ministry, through the monitoring body, sent a letter to the radio station on Feb. 15.

P. Perangin Angin, who heads the monitoring body, said the letter instructed Radio Era Baru to stop broadcasting on fequency 106.500 MHZ because it clashed with another local radio station, Sing FM.

“Radio Era Baru must stop its broadcasting activities because it uses the unpermitted frequency. This is purely technical,” Perangin Angin said.

Parlindungan Sihombing, chairman of the Indonesian Broadcasting Commission in Riau Islands, supported the monitoring board’s decision, saying that the radio station had no valid broadcasting license.

“But they related this technical matter to a political issue. We ask the ministry to sue the radio operator,” he said.

“Contentwise, there is nothing wrong with Radio Era Baru. This is purely technical and the station must obey [the rules],” he added.

With 30 percent of its broadcasts in Mandarin, Radio Era Baru holds Chinese-Indonesians as its
target demographic.

Soehendro Gautama, the chairman of Chinese-Indonesians Association of Riau Island said they applauded the Mandarin-language radio station, but broadcasting activities should follow correct procedures.

“Broadcasting like this is positive because it develops culture. But the administrative management also has to be transparent,” he said.

Suspect admits role in Noordin terror link

Terror suspect Syaefudin Zuhri played a significant role in the terror network covering Java and Sumatra, the South Jakarta District Court heard Monday.

Zuhri admitted before the court that he organized a meeting between terror convict Muhammad Thaib and Malaysian-born fugitive Noordin M. Top.

Thaib, who has been serving a 12-year jail term, was the leader of a Sumatra terror network called the “Palembang Group” that planned to blow up the Bedudel Café in Bukit Tinggi, West Sumatra, several years ago.

“At that time, Thaib asked me if I could show him how to implement jihad,” he said in court.

Zuhri said the conversation occurred when he visited Palembang, the capital of South Sumatra, to deliver sermons to a Koran recital group.

As a follow up to the meeting, Thaib went to Kroya, a small town in Central Java, to meet Zuhri, who promised to introduce him to Noordin M. Top.

Zuhri said they met twice and the meetings were usually conducted in an abandoned house at night.

However, Zuhri claimed he did not know what Thaib and Noordin were discussing because he was not present at their meeting.

“I was just facilitating the meeting and didn’t know anything about their discussion,” he said.

Asked when he first met Noordin, Zuhri acknowledged that he had met him through his
friend named Ali several years back.

“But even though I knew Noordin personally, I never met him directly.

“Every meeting was held through a person named Santo,” he recalled.

He also said Noordin M. Top had married Arina Rahmah, daughter of Baridin Latif, Zuhri’s
brother-in-law.

Noordin had two children with Arina.

Zuhri acknowledged that he went to Afghanistan in the wake of Russia’s invasion of the country in the mid 1980s.

He spent years there studying Islam and undergoing military training.

He went to Afghanistan with Ali Imron and Hisyam.

Zuhri also acknowledged that he had spent his first years in Afghanistan with other convicted
terrorists such as Imam Samudra, Abu Dujana, Anis Sugandi and Nasir Abbas, who has been de-radicalized.

Nasir was arrested by the police during an operation in the outskirts of Jakarta.

He then left the group and cooperated with the police.

Nasir allegedly often informs the public about how terrorists build their networks and believes that terrorism taints the image of Islam.

Syaefudin Zuhri was arrested just a few days before the July 17 bombings last year of two upscale hotels, the Ritz-Carlton and J.W. Marriot in Jakarta, which claimed nine lives including two suicide bombers.

Zuhri’s hearing session was adjourned to March 8.

In a separate courtroom, a hearing session of Amir Abdillah, another defendant of the July 17 J.W. Marriott — Ritz-Carlton bombings featured witnesses Windu Oktaviani, Dikdik Ahmad Taufik and Mustafa Karim.

The witnesses are hotel employees who saw the two suicide bombers just before they blew themselves up.

Amir Abdillah was arrested in North Jakarta, along with Yayan, who was believed to have been groomed by Noordin and Ibrohim to become a suicide bomber.

Their target was reportedly President Susilo Bambang Yudhoyono.

Actress Five V once cheated by spiritual guru

"I was cheated by a person who claimed to have supernatural powers. I only have myself to blame, as I chose to believe him. I lost millions of rupiah," Five V told vivenews.com on Sunday.

Five V's comments appear to have been spurred by the recent alleged sexual harassment case involving noted spiritual leader Anand Krishna.

A group of women last week reported Anand to the National Commission on Violence against Women in Jakarta, alleging that he sexually harassed them when they studied under him.

Anand is also a renowned columnist who writes about spirituality.

Since the incident, Five V, who once hit the tabloid headlines with her battle against her husband for the custody of her child, admitted she had to be more careful in the future when meeting new people.

The 31-year-old actress has now decided not to hire a spiritual advisor. "I preferred to tell my problems to my parents. They are the best spiritual teachers," she said. - JP