On 16 August 2021, the President of Indonesia, Mr. Joko Widodo delivered the budget speech for the year of 2022.
In the speech, the President urged to continue the tax reforms in order to promote independence in financing the development. The tax reforms aim to create justice for all the people of Indonesia and are carried out through expansion of tax base, improvement of taxpayer compliance as well as enhancement of tax management and administration in order to increase tax ratio. Furthermore, provision of various proper and measurable tax incentives is expected to be able to encourage acceleration of recovery and improvement of national investment competitiveness as well as to spur economic transformation.
Although the speech does not provide particular details of the reforms, it is expected that the reform measures will also include measures announced by the Finance Minister in June.
