As the global economic crisis deepens, the government plans to take over tax liabilities normally paid by companies, to help maintain jobs. Acting Coordinating Minister for the Economy Sri Mulyani Indrawati said Thursday there was a plan to waive workers’ income tax liabilities which were regularly provided by the corporate sector via benefit packages. By scrapping this cost, Mulyani expects the corporate sector would be encouraged to keep workers on despite hard times.

Originally Posted By: biznews Contractors Complain Regional Taxation Is Penalizing Industry During Lean Times “Of course all regulations issued by local governments are legal, but are they appropriate?” Freddy said. Faced with these extra charges, Swa Kelola and many others have refused to pay the Central Kalimantan government, Freddy said. Hi, I admit to law-breaking. Please change the law.

Small and medium-sized furniture and handicraft businesses are calling on the government to help increase their access to cheap credit and guarantee them a supply of timber, which has fluctuated over the past few years.

PT Swa Kelola Sukses, a Jakarta-based earthworks and heavy equipment rental company operating in Central Kalimantan Province, is one of hundreds of coal mining contractors that have been badly affected by the taxes imposed by local governments, especially those relating to heavy equipment. And with the House of Representatives planning to strengthen regional authorities’ power to increase those taxes, Swa Kelola’s president director, Freddy Samad, says it’s time for them to back off.

Indonesian subsidiaries of Japan's leading electronics maker Sanyo Electric Co. Ltd. remains upbeat about local demand despite forecast lower growth. Sanyo, which is about to be purchased by rival Panasonic Corp., for US$10.1 billion, forecast demand for electrical appliances could slump slightly this year to around Rp 18 trillion ($1.6 billion) from Rp 17.5 trillion estimated last year.