Finance ministry unveils $28m in corruption
Finance ministry unveils $28m in corruption
JAKARTA (JP): The finance ministry announced on Monday it had
uncovered 11,536 corruption cases involving Rp 183.64 billion
(US$28 million) occurring from April 1997 to the end of last
month.
Finance minister Bambang Subianto said that more than 76
percent of the corruption was linked to tax fraud.
"These findings are related to wrongdoings by various
parties," Bambang told a news conference.
Bambang, however, declined to disclose the names of those who
had either failed to pay taxes or were involved in tax fraud.
"I can't remember all their names. But they can be given to
you on the next occasion," he said.
Bambang said the government had conducted further
investigations into 6,166 corruption cases covering Rp 27.56
billion.
Bambang's announcement was part of the government's third-
stage report on the results of the national campaign against
corruption, collusion and nepotism, particularly during the 32
years of former president Soeharto's rule.
Rampant corruption and collusive practices have been cited as
main causes of the country's deep economic trouble.
The Habibie administration has intensified efforts to root out
corruption amid pressure from the public. But he has yet to take
serious measures against the alleged corruption committed by his
predecessor Soeharto, who according to a recent Time magazine
report had allegedly amassed some $15 billion in wealth.
Bambang said the government had revised various past
regulations which provided tax relief and other privileges to
certain institutions and companies.
He pointed out that certain foundations, particularly those
linked to Soeharto, were no longer exempt from paying time
deposit tax.
He added that the government would no longer provide import
duty exemptions to cars brought in by taxi operators or on
capital goods procured by independent power producers.
Bambang added that the government had revoked rulings which
provided special tax treatment for controversial carmaker PT
Timor Putra Nasional.
Timor, which is owned by Soeharto's youngest son, owes some Rp
3.2 trillion in back taxes to the government.
Under a previous ruling, Timor was exempt from paying tax and
duties on car imports from South Korea under the condition that
20 percent of their components were locally made.
But since the company failed to meet the requirement, the
government ordered Timor to pay the taxes and import duties.
The case is being reviewed by the State Administrative Court.
Bambang also announced on Monday new criteria on companies
required to submit annual financial reports to the government in
a bid to improve transparency and increase government tax
revenue.
He said that under government regulation No. 64/1999,
companies which must submit annual financial reports include
those with minimum assets of Rp 25 billion or those which have
bad debts at local banks.
Bambang said foreign companies operating in Indonesia were
also obliged to submit annual financial reports.
Bambang said the new criteria were effective as of this
financial year, except for the requirement of Rp 25 billion in
minimum assets which would become effective next year.
He added that the financial information on the companies would
be provided for the public through the ministry's website
(http://lktp.dprin.go.id).
The government stipulated last year that companies with
minimum assets of Rp 50 billion were required to submit annual
financial reports. Publicly listed companies or financial
institutions which raised public funds or issued debts are also
subject to compulsory reporting.
Bambang said the new regulation does not annul earlier
rulings.
He said the government expected information on some 1,000
companies would be included in the website by the end of this
month.
He added that the figure was projected to increase to 3,000 to
4,000 by the end of this year.
Bambang said the compulsory reporting would help the
government build a strong database in designing various policies
including tax and investment.(rei)