President gets direct access to supervise tax revenue

Fabiola Desy Unidjaja, The Jakarta Post/Jakarta

In an effort to ensure transparency at the taxation office the Ministry of Finance's Directorate General of Taxation installed an online monitor at the presidential office on Friday, so that President Susilo Bambang Yudhoyono can supervise updated tax revenue nationwide.

Featuring revenue from taxation offices in 33 provinces, the online plasma monitor was installed in collaboration with 86 banks and can only be switched on using the President's fingerprints.

"The monitor will give the President direct access to monitor updated tax revenue through a secure line," Director General for Taxation Hadi Purnomo said.

"We will also set up a system whereby the President can find all the data he needs if he has any inquiries on tax revenue."

Indonesia's tax income has sharply increased over the past two years. Last year's tax income of Rp 239 trillion (US$25.75 billion) surpassed the targeted figure in the State Budget of Rp 238.6 trillion.

The taxation office was among the first government institutions visited by Susilo during his early days as President. His administration has prioritized minimizing "leakages in lucrative offices".

Hadi said that the idea to set up the online monitor came during a discussion between taxation officials and the President himself.

He added that since early this year, tax revenue has reached Rp 12 trillion, although the State Budget requires monthly tax revenue of Rp 23 trillion on average.

"Several factors still hamper us in increasing tax revenue such as the central bank's disapproval for access to people's bank accounts and poor coordination among government offices."

Hadi said without the approval, the taxation office could not decide on the exact amount that should be paid by certain individuals or businesspeople.

He added that this lack of coordination had also made it difficult for the taxation office to double check taxpayers' tax obligations.

However, Hadi remains optimistic that his office can reach the targeted revenue as stated in the State Budget.