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