Interest and tax on bank deposits

Interest and tax on bank deposits

From Kompas

I'm lucky to receive a monthly pension of Rp 320,000 from a
fairly large company in Indonesia. When I went into retirement
nine years ago, I was given Rp 86 million as separation pay. This
was deposited in a bank and is still intact. From this deposit, I
receive a monthly interest of Rp 665,210 (11 percent p.a.).

Last December, I received Rp 985,000 (my pension plus
interest). However, in January this year, the bank deducted, from
this amount, a 20 percent tax p.a. on the deposit (previously 15
percent p.a.). Although the interest on the deposit has increased
to 11.2 p.a., my interest earning from the deposit has become Rp
641,000, which means Rp 24,210 less. This deducted amount is very
important to me especially because the prices of our daily
necessities and the rate of inflation continues to rise.
Honestly, my purchasing power is much weaker now than it was nine
years ago.

What comes to my mind is the fate of many other people like
me, people who depend on their pension or separation pay (there
have been many layoffs lately) for their subsistence. I believe
the government fully understands the plight of people like me.
Wasn't the previous 15 percent tax on deposits high enough?

HIDAYAT

Tangerang, Banten