Fiscal Stimulus

Immediate Fiscal Stimulus Necessary

VIVAnews - The Deputy Head of the Standing Committee of Taxes of the Indonesian Chamber of Commerce (Kadin), Sriwahyuni Sujono, asks the government and House of Representatives to immediately disburse fiscal stimulus.

According to the Sujono, there are many companies that experience cash flow difficulties due to the global financial crisis. The most affected areĀ  mining companies.

"The business turnover of the mining sector decreases to 40 percent," said Sujono in Jakarta on Thursday, Feb. 19.

For that reason, she hopes that income tax incentives can be disbursed faster. The Indonesia Chamber of Commerce also suggests that the employers should not raise their employees' salaries.

"We don't mean to harm the employees," she said. The crisis affects both employers and employees. "All of us are affected by it," she continued.

She explains that employees get payroll incentives. Their non-taxable income (PTKP) has also been increased. This means that even though numerically the salaries remain the same, they actually indirectly get a raise.

For that reason the Chamber of Commerce suggests that the incentive for employers be disbursed as soon as possible. "However we are not asking for zero percent or an exemption," she said.

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Translated by: Ariyantri E. Tarman

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29 Maret 2024