Analyst Views Tax Exemption as Facilitating State-Owned Enterprise Merger Process
Jakarta (ANTARA) - State-owned enterprise (BUMN) analyst and Director of the NEXT Indonesia Center, Herry Gunawan, believes that the tax exemption policy for BUMN mergers will facilitate the consolidation process of red-plate companies.
According to him, the BUMN consolidation policy through mergers or acquisitions is a direct presidential directive aimed at reducing the number of BUMNs to make them more efficient. Therefore, the Ministry of Finance (Kemenkeu) policy is seen as part of the support for the government’s strategic programme.
“I agree with that policy. If BUMNs become healthier due to consolidation, including because the process receives tax facilities, then in the future it has the potential to support state revenues as well through better business activities,” Herry said in Jakarta on Friday.
The impact of the tax exemption on company costs or burdens may not be too significant. However, the policy still helps companies, both in terms of administration and the cash of companies undergoing mergers or acquisitions.
Nevertheless, Herry reminds that the BUMN merger and acquisition process is not only related to taxation but also involves several other risks that need to be mitigated.
From a legal perspective, mergers and acquisitions can affect changes in the business field or the company’s articles of association, which fall under the domain of the Ministry of Law.
In addition, there is also the potential for unhealthy business competition, which is the authority of the Business Competition Supervisory Commission (KPPU).
Besides legal aspects, Herry considers reputational risk as an important issue that needs to be addressed in the BUMN consolidation process. Therefore, the State-Owned Enterprises Regulatory Body (BP) BUMN and Danantara need to actively manage stakeholders and mitigate various potential risks in the consolidation process.
According to Herry, the real challenge of BUMN consolidation will occur after the companies merge, particularly in the process of integrating human resource competencies, organisation, and company values.
It was previously reported that Finance Minister Purbaya Yudhi Sadewa has exempted tax levies for three years for the restructuring of BUMNs. Companies categorised as BUMNs are planned to be reduced from 1,077 companies to around 200-300 companies.
After three years, if corporate actions for streamlining BUMNs are not complete, they will be subject to regular taxes.
“For example, if it’s not finished, there are still mergers or acquisitions, then we charge normally. There is tax, after all,” Purbaya said.