Pursuing Vietnam-Thailand, Prabowo Subianto Will Kerek Tax Ratio Up 6 Percent

Presidential Candidate Number Two Prabowo Subianto (Photo: Antara)

Presidential Candidate (Capres) Number 02, Prabowo Subianto has set a target to increase the tax ratio by 5 to 6 percent from the current achievement if elected in the 2024 General Election. The goal is to make Indonesia's position equal to Malaysia, Vietnam, and Cambodia.

Initially, Prabowo revealed that the tax ratio in Indonesia was currently still at 12 percent. Meanwhile, neighboring countries are much higher. For example, Thailand and Vietnam which reached 16 percent and 18 percent.

"So our revenue ratio is taxed plus other income is around 12 percent, but it is true that Thailand, Vietnam, our neighbors have 16 percent already," Prabowo said in the Presidential Candidate Dialogue with the Indonesian Chamber of Commerce and Industry: Towards Indonesia Gold 2045, in Jakarta, Friday, January 12.

According to Prabowo, if Thailand and Vietnam can't do it, why can't Indonesia. Therefore, he emphasized that Indonesia must also be equal to the two countries in terms of tax ratios.

"I ask, what's the difference between us and Thais and Vietnamese people, are we stupid or what the problem is. So if they can do it, we must also do it, we must not give up," he said.

In order to pursue the position of Malaysia, Thailand, to Cambodia, Prabowo brought up the role of the special state revenue agency. He wants to increase the tax ratio by 5 to 6 percent to 18 percent.

"Our target is that we have to increase from 12 percent. We have to go up to 5 percent or 6 percent," Prabowo said.

Prabowo also revealed a strategy that will be used by his party to increase the tax ratio by 5-6 percent in the future. One way is based on political decisions.

"So first, it all comes from will, political will, political will, there will be no political will to be the same as Malaysia Thailand Vietnam and Cambodia, and if there is a political will, we will look for efforts, among others, by computerizing with digitization and with transparency efficiency," he said.

Prabowk also said that he would separate the Directorate General of Taxes (DJP) and the Directorate General of Customs and Excise. Later, he said, a special agency will be formed to take care of state revenues.

"We want to separate the separate revenue bodies so that the Minister of Finance is more efficient, there is no need to think about it or take care of it, there is a Special Agency then we separate the treasury between the management of state assets and revenues," he explained