The obligation to park export proceeds domestically is needed to secure foreign exchange reserves and strengthen the rupiah exchange rate. However, this step needs to be accompanied by strong incentives so as not to harm exporters.
In the midst of a slowing trend in state revenues, the Ministry of Finance revised regulations on budget management to ensure that future government spending can be more productive and according to priorities.
Benjamin Simatupang and Terananda Prastiti of GNV Consulting outline a host of significant tax updates from Indonesia, including an updated Job Creation Law and a VAT incentive for battery-based electric vehicles.