For more information contact: Ms. Astari Sutjiningtyas, External Relations Manager [email protected]or.id 62 818-862-217
Leading US Companies Engage with Indonesian Government on Regulatory & Tax Reform
JAKARTA. AmCham Indonesia and the US Chamber of Commerce led more than thirty delegates representing twenty US companies for two days of talks with senior Indonesian government officials March 4-5. The mission, “Roadmap to Regulatory & Tax Reform,” was designed to engage with the government on the regulatory environment in Indonesia during the second term of President Joko Widodo.
Among the officials the delegation met was Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Panjaitan and Finance Minister Sri Mulyani Indrawati. Delegates also met Energy and Mineral Resources Minister Arifin Tasrif and senior officials from the Coordinating Ministry for Economic Affairs, the Ministry of Trade, the Ministry of Law and Human Rights and the Indonesian Investment Coordinating Board (BKPM). There were also discussions with private sector representatives.
Officials were upbeat in focusing on the pending Omnibus Job Creation Bill and Omnibus Tax Bill. “Most of my staff comes from the younger generation,” said Luhut. “I tell them when you are making a regulation you need to think ahead and make a good one, because it will not impact my generation. It is your generation and those that come after you who will be impacted, therefore make a good one.”
In his capacity as investment head, Luhut said his ministry was working closely with US companies on a number of major investments focused on energy and electric vehicles.
Sri Mulyani, accompanied by Director General of Tax Suryo Utomo and other senior officials, focused her remarks largely on the incentives under the pending Omnibus Tax Bill. She also touched on the difficulties the country may be facing due to the COVID-19 crisis.
"The corona virus is attacking the global supply chain, and I admit the psychology of people is affected by this situation,” Sri Mulyani said. She said she remains bullish on prospects for
the year and for a strong recovery, noting that at a recent G20 finance ministers meeting the consensus was that the economic damage from COVID 19 could be contained.
The mission was the first of 2020 and was held under the auspices of Initiative Indonesia, a joint program of AmCham and the US Chamber. Throughout the year, the Initiative engages with the Indonesian government on behalf of member companies to ease regulatory issues and advocate for a better business climate. The Initiative will conclude with the annual US-Indonesia Investment Summit in November.
“The discussions we had during the mission were open and helpful,” said AmCham Managing Director A. Lin Neumann, who headed the delegation. “The Omnibus law process has our complete support. It has the potential to be the most important series of economic reforms in at least twenty years as it tackles dozens of issues of long-standing concern to investors.”