Bahlil Lahadalia: The Implementation Of The Minimum Tax Global Is Too Early To Disrupt The Downstreaming Program

Minister of Investment/Head of BKPM, Bahlil Lahadalia. (Between/Fikri Yusuf)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that if the Global Minimum Tax (GMT) was implemented too early it would interfere with the downstream program being promoted by the government.

Furthermore, Bahlil said this would make investors from developed countries re-invest in their countries.

"The global minimum tax, which is 15 percent, inevitably developing countries that are pushing downstream, will experience major obstacles because the owners of capital that have technology and invest will then invest in their countries," said Bahlil in an official statement, Sunday, August 20.

Bahlil continued, the GMT policy will force developing countries to send raw materials to developed countries. So, according to Bahlil, GMT is nothing more than a trick from developed countries.

"Our knowledge (of knowledge) understands. Don't think we don't understand anymore," said Bahlil.

Therefore, Bahlil requested that the implementation of GMT be reviewed. Bahlil said the implementation of GMT would only benefit certain countries, in this case developed countries with stronger investment competitiveness.

"With the global minimum tax provision earlier, the tax holiday is a maximum of 15 percent. From the agreement, we decided that this needed a review," said Bahlil.

Unlike Minister Bahlil, Minister of Finance Sri Mulyani Indrawati said that various countries are now preparing to implement a global minimum tax agreement or global minimum tax (GMT).

Sri Mulyani said that so far Indonesia is still using fiscal incentives to increase investment competitiveness. According to him, these various fiscal incentive schemes also continue to be honed so that they are effective in attracting investment.

This will be one of the focuses because the world is now also starting to gradually implement global taxation which aims to reduce