Critics on Tax Amnesty and The Eager of Companies

Tax Amnesty of Jokowi is absolutely like repulsive policy after the failure of low revenue below the  target in first quarter. On the other hand, the government is on fire to build massive infrastucture program, it needs more fund. 

Jokowi decided to release tax amnesty expecting to earn beyond 100 trillion rupiahs to sustain his program. It is  much evident that he aims to use the money earned from tax amnesty to sustain massive infrastructure that are threatened to  be clogged up due to low revenue. 

However, it exhibits the courage of president to create reformation in term of taxation. Further, government elaboration on the grand scheme of tax amnesty definitely lucrative in long term. Jokowi's intuition goes beyond critics of others that in long term he wants all the indonesian investors abroad to return to the country. It has been so long that indonesians'money abroad has enriched countries like singapore, swiss, etc. 

Tax amnesty also harvests the critics like from former president SBY who considered it as not a prudent choice. SBY proposed on the parsimony of expenditure through cut off unnecessary program of infrastructure. SBY claimed that government has made a mistake pushing massive infrastructure in the midst of economy slowdown. Other activist also protested on tax amnesty claiming that it gives a slit to tax evaders and possibly protecting the money laundry crime. Moreover, tax amnesty is pointed out unjust for marginal class. 

Going in contrary to the perspective of contra which is basically political by nature, the companies precisely eager to welcome the momentum to trawl the tax amnesty fund. For instance PT Waskita Karya (Persero) Tbk (WSKT) plans to issue bonds worth Rp 5 trillion to solicit funds repatriation of the results of the application of the policy tax amnesty or forgiveness Tax Act.
"Our initial target of Rp 5 trillion, the target (bond issuance) this year," said Director of WSKT, M Choliq, Building SOE Ministry in Jakarta, Thursday (07/14/2016).
According Choliq, the inflow of funds repatriation provide numerous benefits for the company. By doing so, it will absorb these funds through a variety of investment instruments.
"The instrument can vary, I can either IPO-kan Waskita Concrete Precast. I can sell shares WTR (PT Waskita Toll Road) and bonds. The total could be Rp 15 trillion to Rp 5 trillion of the instrument, Rp 10 trillion of instruments equity, "he said.
As is known, the government plans to direct funds repatriation tax policy results amensty to finance infrastructure projects. Funds will be directed to enter through the proficiency level of investment instruments bonds or infrastructure bonds.