VAT privileges for SMEs

VAT privileges for SMEs

Small and medium enterprises (SMEs) are the true heroes of the
Indonesian economy. While many conglomerates collapsed as a
result of the economic crisis that engulfed the country, SMEs
have withstood the impact of the crisis, despite skyrocketing
lending interest rates and the rupiah's extraordinary
depreciation against the U.S. dollar.

Of course, they could not afford to employ professional
managers. Neither do they have the money to hire consultants to
make business strategies and forecasts. They do not even have
adequate access to banking facilities. Yet, these "shortcomings"
have become their strength amid economic uncertainty.

It is not because the government considers SMEs as strong that
it has paid little attention to them. Like other business groups,
SMEs deserve to have access to banking facilities, business
information and other privileges.

In this context, the Finance Ministry's move to raise the
turnover limit of SMEs as untaxable entrepreneurs from Rp 360
million to Rp 600 million is praiseworthy.

-- Bisnis Indonesia, Jakarta