JAKARTA (TheInsiderStories) – Directorate General for Taxation of the Finance Ministry Sigit Priadi Pramudito has stepped down from his position after tax revenues were far below target. Sigit was just appointed in February this year.
His move to resign surprised many people as it is rare for Indonesian top officials to resign for failure to reach target.
The government is targeting to book tax revenues of Rp 1,294.2 trillion ($93.78 billion) as set out in the 2015 State Budget. However, as of end November, the tax revenues only reached 65 percent of the target.
Finance Minister Bambang Brodjonegoro said he has appointed Ken Dwijugiasteadi as the acting director general for the tax office. He will act as the new official in the office on Wednesday.
Previously Ken and two director of Director Generals for Taxation Eddy Slamet and Dadang Suwarna have been selected as a candidate for the position before President Joko Widodo appointed Sigit.
“He resigned as the tax revenues were not achieved,” he said.
Ken previously held positions as an expert staff for directorate general for taxation and head of tax office for East Java region.
Vice President Jusuf Kalla said earlier Indonesia will have short fall in revenues of Rp 430 trillion. To address this deficit, the government plans to cover the deficit by issuing government bonds worth Rp40 trillion next year.
Previously, Bambang stated, this year’s deficit could reach 2.7 percent of gross domestic products or around Rp 300 trillion.