Detail Cantuman

The COVID-19 pandemic has changed economic and social developments and arrangements
throughout the world. This pandemic requires the Government together with elements of the
community to make efforts to prevent the spread of the virus and economic recovery. In the
context of maintaining sustainable development in the midst of dynamic fundamental
challenges, the National Budget as an instrument of fiscal policy is designed to be more
productive, effective, and efficient in order to accelerate economic growth for welfare and
improve the government's balance sheet. Global economic activity has been disrupted due to
lockdown policies in a number of Indonesia's major trading partners, which has reduced supply
of important components for industries from abroad. The increasing exchange rate of the US
dollar makes the price of imported materials more expensive. On the consumption side, many
companies experience cash flow difficulties, thereby reducing their ability to pay taxes
resulting in significant tax revenues such as Corporate Income Tax. Significant reduction in
international trade activities also resulted in lower tax revenues from imports and import duties.
Tax revenues also experienced pressure from falling world oil prices, minerals, and CPO which
are important components in calculating oil and gas PPh and export duties. Tax revenue
performance is expected to weaken in 2020 with a tax ratio potentially below 9 percent. The
government has made the first policy of relaxing the taxation by reducing the burden of
business activities and helping to improve the condition of the company's cash flow, especially
during and after the COVID-19 epidemic. The company can use a reduction in corporate
income tax rates, exemption from import PPh and certain sector import duties, as well as
various other tax facilities to cover increases in input material prices and decreased sales so
that it continues to operate normally. Both Governments have made efforts to expand the
taxation base and improve tax administration. Third The addition of new tax objects, one of
which the Government levies taxes on Trade through Electronic Systems (PMSE) and other
object sources of excise products such as plastics, sweetened drinks, and fuel oil (BBM).
Fourth, from the aspect of tax subject by extending the taxpayers (WP), which are sector-based
and regional, increase WP voluntary compliance through effective education and service
improvement, including the High Net Worth Individual (HNWI) group. The Fifth Government
seeks to improve tax governance and administration starting from business processes,
information technology, databases (core tax), organizations, and HR. From government
policies in the effort to accelerate economic recovery, there are still various obstacles,
especially in terms of regulations or policies prepared as well as technology as a means of
infrastructure in supporting these regulations. The regulation or policy must touch on all
aspects, namely aspects of tax law, aspects of tax justice, and aspects of the Double Tax
Avoidance Agreement (P3B) for cross-border transactions.