Finance, trade ministries to share online database

Dewi Santoso, The Jakarta Post, Jakarta

Beginning in August, the Ministry of Finance and the Ministry of Industry and Trade will share information through an online database under an agreement signed here on Wednesday.

Director General of Taxation Hadi Purnomo of the Ministry of Finance said that the online database was aimed at exchanging valid data on importation, exportation, customs, excise and taxation.

"It's difficult at present to detect whether a person has paid tax in accordance with his/her assets as we have no access to banks to get information related to credit cards, money laundering and savings accounts," said Hadi.

According to data collected by the Directorate General of Taxation in 2002, out of the 84 million houses and plots of land, only 9.5 million were listed in tax reports. Similarly, out of 28,519 luxury cars, only 615 were listed in tax reports, and out of 18,948 companies, only 3,100 submitted audit reports.

The planned online database will enable the Ministry of Finance's Directorate General of Customs and Excise and its Directorate General of Taxation and the Ministry of Industry and Trade's Directorate General of Domestic Trade and its Directorate General of International Trade to share information on companies' tax numbers, tax reports and business licenses.

"With the online database, we will be able to find out the status of product importation, whether or not it is legal. We'll also be able to find out whether or not a person or a company pays tax," Hadi said.

Hadi said that the funds for the online system had been taken from the state budget, but he refused to provide figures, saying "I don't really know about the figure."

Minister of Finance Boediono said the online system was a move to improve coordination between the two ministries.

"This system will allow all relevant officials to communicate in depth without misunderstanding," he said.

He said a lot of parties tried to find ways to avoid paying tax.

"But with this system, I'm optimistic that we will nail those people," he said.

Minister of Industry and Trade Rini MS Soewandhi said the online database was crucial as it could provide accurate and transparent information and thus help the country keep the industry in a healthy state.

"This system will enable us to capture illegal importers who are at large and those selling products at lower prices and creating unhealthy competition among businesspeople," said Rini.