ADB Economist: The Establishment Of BPN Does Not Immediately Have An Impact On Increasing State Revenue

Main Economist of the Department of Economic Research and Regional Cooperation of the Asian Development Bank (ADB) Arief Ramayandi. (Photo: Doc. Antara)

JAKARTA - Main Economist of the Department of Economic Research and Regional Cooperation of the Asian Development Bank (ADB) Arief Ramayandi assessed that the formation of the State Revenue Agency (BPN) did not directly have an impact on increasing state revenues.

"There is no empirical evidence to suggest that the separation of BPN (Directorate General of Taxes from the Ministry of Finance) will immediately encourage state revenue," Arief told reporters in Jakarta, quoted from Antara, Thursday, May 16.

Even so, he said the formation of BPN was possible, as happened in the separation of Bank Indonesia (BI) and the Financial Services Authority (OJK).

The separation will make the responsibility of the agency even more narrow so that the concentration of management will be more focused.

They just need to concentrate on collecting state revenues. On the other hand, there is the Ministry of Finance who is more focused on fiscal. So, because they only focus on one job, they should be more effective," he said.

Arief believes that the urgency for Indonesia to form a BPN depends on the Ministry of Finance. If the state treasurer institution feels the need to focus on fiscal policy, the urgency of BPN formation will be higher. Meanwhile, if the Ministry of Finance feels the pressure is not large enough, then the urgency will be lower.

"So, it depends on the Ministry of Finance," he said.

It is known that the elected presidential and vice presidential candidates Prabowo Subianto and Gibran Rakabuming Raka plan to form a BPN after being inaugurated.

Later, the DGT, which has been under the Ministry of Finance, will be released from the ministry and as a replacement, will be formed by BPN who is directly responsible to the president.

The establishment of BPN is targeted to increase the ratio of state revenues to Gross Domestic Product (GDP) to 23 percent.

The discourse on separating DGT from the Ministry of Finance was rolled out by the Office of the Ministry of Administrative Reform in 2004. The proposal was contained in the letter of MenPAN number B/59/M.PAN/1/2004 and had been sent to the president at that time.

The proposal is also one of President Joko Widodo's campaign vision and mission in 2014.