Joko Widodo and Ma'ruf Amin announced the cabinet member today (10/23) - Photo by Kompas

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo start looking his new ministers and consider for a young figure to enter his cabinet. Widodo claimed he would not distinguish professional backgrounds or political parties in drafting the new cabinet for 2019 – 2024.

Several names associated in the Widodo – Ma’ruf Amin’ cabinet structure began with Yusril Ihza Mahendra, Democrat Party cadres Agus Harimurti Yudhoyono, Solidaritas Indonesia Party chair Grace Natalie, Yenny Wahid, and others.

In the bilateral meeting with President Xi Jinping in Osaka, Japan, Indonesia asked China to prepare special funds for investment in Belt and Road Initiative (BRI) for the proposed project worth of US$91 billion, said Finance Minister Sri Mulyani Indrawati. She said, Widodo insisted that loans carried out on the basis of business-to-business (B2B).

During the second BRI in April, the government had offered China involvement in around 30 projects, including a $6 billion high-speed railroad project connecting Jakarta to Bandung, West Java, which was given to a consortium of Chinese companies and Indonesia in 2015.

While, she said, Indonesian government is preparing a number of legal measures to prevent corruption and crack down on corporate tax arrears in Indonesia by use the beneficial owner’s database. As a follow-up to presidential regulation Number 13 Year 2018 concerning the implementation of the principles of recognizing benefit owners from corporations, this cooperation is expected to strengthen the prevention and eradication of money laundering crimes to the crime of funding terrorism.

It said the directorate general of taxation will seriously investigate Indonesian assets that are not reported through the annual tax return form, and is preparing punishment for non-compliant taxpayers. Referring to Automatic Exchange of Information in 2018, data indicating that Indonesians have parked Rp1.3 quadrillion ($91.3 billion) worth of assets in a number of countries.

Furthermore, the government also intended to reduce smuggling and misuse of facilities at the customs at the border by facilitating the construction of the Basic Bonded Logistics Center. The intention was to fulfill their basic needs by using a Cross-Border Identity Card through a Cross Border Post or at the Principal Bonded Logistics Center by obtaining exemption from import duty and tax in the context of import.

Directorate of Customs also simplifies the procedures for temporary import and export of motorized vehicles with the use of a single document in the form of Vehicle Declaration, which previously required several documents. Export procedures for border crossers are also regulated in this rule, so that border trade statistics, both imports and exports, can be photographed in their entirety.

Then, Indrawati proposed raising the stamp duty tariff so that no longer be divided into two, but only one worth of Rp10,000. The potential for increasing state revenues with the increase in stamp duty rates can reach 75 percent or increase from Rp 3.8 trillion to Rp 8.83 trillion.

This amount will only come from the postage stamp and not counting the revenue from the digital stamp, which is planned to apply if the Stamp Duty Bill is approved. In the bill, the nominal limit of documents subject to stamp duty will be changed.

The initial limit of two layers with a value of more than Rp250,000 and above Rp1 million will be simplified to be above Rp5 million. At present the applicable stamp duty rate is Rp3,000 and Rp6,000. Its value is regulated in article 2 of Act Number 13 Year 1985 and Government Regulation Number 24 Year 2000 concerning object and stamp duty rates.

Meanwhile, the ministry of trade continues to increase the export of Indonesian products to the international market, one of which is through the completion of trade agreements with partner countries. Until 2020, the ministry is targeting the completion of 11 trade agreements, both bilateral and multilateral.

At present, the government is finalizing the ASEAN Regional Comprehensive Economic Partnership agreement and six bilateral agreements with countries namely the European Union, Mozambique, Tunisia, Morocco, Turkey and Egypt.

From abroad, after an accident that killed 346 passengers of the Boeing 737 Max in Indonesia and Ethiopia, the management of Boeing Co., has provided funding of $100 million to help victims’ families and other people affected by the plane crash. These funds will be available for the next few years and not part of any compensation that Boeing has to pay to those who sued the company for damage related to the accident.

Meanwhile, crude oil prices still slumped amid the decision of the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, which extended the policy of cutting production. The price of Brent crude oil futures for September trading fell by 4 percent since June 28.

Brent oil prices opened at the level of $62.81 a barrel and the price of US West Texas Intermediate oil futures for trading in August 2019 also weakened by opening at the level of $56.56 per barrel or down about 5 percent compared to the previous days which traded at the level of $59 each barrel.

Yesterday, Indonesian Rupiah against the US dollar closed slightly higher in spot market trading at the level of 14,100, or up 0.14 percent from the previous day. While, the Jakarta Composite Index slipped to the red zone, dropped 0.35 percent or 22.28 points to 6,362.62.

US$1 = Rp14,200 

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia