The economy show sign of resilience despite gloomy global outlook. Stronger domestic demand generated slightly faster growth in Indonesia, Southeast Asia’s biggest economy, in the first half of 2016. Growth this year and next is seen trending higher but at a lower trajectory than envisaged in March owing to a more moderate increase in investment than earlier anticipated. Inflation is milder than projected earlier, so forecasts for 2016 and 2017 are lowered. Indeed, inflation in 2016 could be the lowest in 16 years. Current account deficits will be narrower than forecast in March (Asian Development Outlook, 2016.
After successful tax amnesty for private businessman, the government still working on to push tax amnesty for small medium enterprise. Aiming at enlarged tax base, the MoF also push forward tax restructurisation i.e. amendment of tax laws and simplifying tax administration.The new tax regime is expected to add competitiveness for the economy.
New Minister and vice minister of energy and natural resources has been appointed in a decision that raising hope for an effective and sustainable policies in energy sectors. The challenge in energy policy of Indonesia is detailed in National Energy Policy (Kebijakan Energy Nasional or KEN). The target of KEN is to emphasize diversification, environmental sustainability, and maximum use of domestic energy resources. KEN was revised in 2014, setting a target energy mix of oil (25%), gas (22%), coal (30%), and new and renewable energy (NRE) (23%), for a total of 380 Mtoe by 2025.
Another challenge in energy sectors is the investment of powerplant. The priority of the GOI is the 35,000 MW project which could cost a mammoth investment that might burdening APBN. Another scheme would be a Private Public Partnership that invites business community in the investment. A lot of works need to be done to make this happen, but the future of energy is promising.
With warm regards,
KAP Rama Wendra
Established in 2003, KAP Rama Wendra is a Registered Accountant Firm, operated mainly in Indonesia and ASEAN region.
We are proud to have served company listed in Forbes 500, State Owned Company, Banks and Listed Company in Indonesian Stock Exchange.
We and our affiliates provides Auditing, Accounting, Taxation, and Corporate Services.
Currently we operate with 3 offices with 60 professionals.
Member of Indonesian Institute of Public Accountant, Indonesian Institute of Accountant, Indonesian Institute of Tax Consultant, Information System Audit and Control Association, CPA Australia, ACCA.
KAP Rama Wendra is a registered accounting firm with Indonesian Capital Market, Bank of Indonesia, Bank Mandiri, BNI, BRI and BPK