Want To Separate Taxes And Customs From The Ministry Of Finance, Prabowo Subianto: Indonesia Loses To Cambodia

Prabowo Subianto's presidential candidate. (Photo: Mery Handayani/VOI)

JAKARTA - Presidential Candidate (Capres) Prabowo Subianto said Indonesia's position lost to Cambodia in terms of the ratio of state revenue to Gross Domestic Product (GDP). Where Indonesia is only 11.8 percent of GDP, while Cambodia is 18.1 percent.

Based on Prabowo's presentation material, as of 2021, Indonesia's tax ratio was recorded at 9.1 percent and the revenue ratio was 11.8 percent.

Cambodia recorded a tax ratio of 16.4 percent and a revenue ratio of 18.1 percent.

"For example, if we look at the acceptance as the ratio of our GDP, the government revenue ratio for GDP, we see that we have lost to Cambodia. Our Gov to revenue to GDP is now touching 12 percent (11.8 percent)," he said at Sarasehan 100 Indonesian Economists, in Jakarta, Wednesday, November 8.

"18 percent Cambodia, actually the latest data I received was close to 20 percent," he continued.

Meanwhile, Prabowo continued, Malaysia's countries recorded a tax ratio of 11.2 percent and a revenue ratio of 15.1 percent.

Meanwhile, Thailand recorded a tax ratio of 14.3 percent and an income ratio of 18.5 percent. As well as Vietnam recorded a tax ratio of 12.9 percent and an revenue ratio of 18.2 percent.

"Malaysia is also above us, Thailand is approaching 20 percent, Vietnam is already 20 percent," he explained.

According to Prabowo, this is something that must be observed, even though Indonesia has great people.

He considered that the root of the problem was that the management had not been optimal.

"I ask now, brothers and sisters, what is the difference between us and Cambodians? What is the difference between Vietnam? Is Indonesia more stupid? More incompetent? I think this is a matter of net management, this is a matter of will," he said.

Therefore, Prabowo said he would reshuffle the Ministry of Finance (Kemenkeu) if he was elected President in the 2024 presidential election.

The reshuffle that will be carried out is to separate the Directorate General of Taxes and the Directorate General of Customs and Excise from the Ministry of Finance.

Furthermore, Prabowo said, later these two departments will be merged into one agency, namely the State Revenue Agency.

He said, this concept has been implemented by other countries that separate policy makers and tax collectors.

"We can fix it with IT with computerization and so on. We can calculate 8 percent of the 1,500 billion dollars, the increase is quite significant, brothers and sisters, hundreds of billions of dollars for our additional budget," he said.