President Joko Widodo and Vice-President Jusuf Kalla finally announced the second reshuffle of their Working Cabinet for the 2014-2019 period from Jakarta’s Merdeka Palace yesterday (Wednesday, 27 July, 2016). Nine new names in total have been appointed as ministers, while four ministers have been moved.
The four moved ministers are Luhut Binsar Panjaitan, who becomes Coordinating Minister of Maritime Affairs; Sofyan Djalil, who becomes Minister of Agrarian Affairs and Spatial Planning; Bambang Brodjonegoro, who becomes Minister of National Development Planning/Head of National Development Planning Agency (Bappenas); and Thomas Lembong, who is now the Head of the Indonesia Investment Coordinating Board (BKPM).
The nine new ministers are Wiranto, who becomes Coordinating Minister of Political, Legal and Security Affairs (replacing Luhut Binsar Panjaitan); Muhajir Effendi, who becomes Minister of National Education (replacing Anies Baswedan); Enggartiasto Lukita, who becomes Minister of Trade (replacing Thomas Lembong); Airlangga Hartarto, who becomes Minister of Industry (replacing Saleh Husin); Budi Karya Sumadi, who becomes Minister of Transportation (replacing Ignasius Jonan); Archandra Tahar, who becomes Minister of Energy and Mineral Resources (replacing Sudirman Said); Asman Abnur, who becomes Minister of State Apparatus and Bureaucratic Reforms (replacing Yuddy Chrisnandi); Eko Putro Sanjoyo, who becomes Minister of Villages, Disadvantaged Regions and Transmigration (replacing Marwan Jafar); and finally Sri Mulyani Indrawati, who becomes the Minister of Finance (replacing Bambang Brodjonegoro).
One of the highlights of the reshuffle is undoubtedly the reinstatement of Sri Mulyani, the former Minister of Finance during the previous administration of President Susilo Bambang Yudhoyono, just as the tumultuous implementation of tax-amnesty policy by the government swings into full effect. Indeed, Minister Sri Mulyani is now responsible for the effective implementation of Law No. 11 of 2016 on Tax Amnesty (Tax-Amnesty Law).
Obviously, having been passed into law, the Tax-Amnesty Law must now be fully implemented, despite its many perceived pros and cons. On the one hand, many Indonesian citizens believe that the Tax-Amnesty Law runs contrary to the 1945 Constitution. In fact, the One Justice Foundation (Yayasan Satu Keadilan - YSK) and the Indonesian People’s Resistance Union (Serikat Perjuangan Rakyat Indonesia - SPRI), in conjunction with two Indonesian Citizens named Samsul Hidayat and Abdul Kodir, have now filed for a judicial review of this particular piece of legislation by the Constitutional Court (MK).
On the other hand, various ministries and government institutions have begun to support the implementation of the Tax-Amnesty Law, according to their various authorities. The BKPM, for example, is currently formulating a scheme which will enable tax-amnesty participants to channel and invest their assets in Indonesia.
Moreover, many economists have ventured suggestions and inputs as regards the implementation of this new policy. One of these economists is Enny Sri Hartati, Director of the Institute for the Development of Economics and Finance (Indef), who asserts that fund repatriation is an important part of the effort being made by the government to collect tax from funds and assets which are currently parked outside Indonesia.
Mrs. Hartati further believes that any repatriated funds should be channeled into the real economy and infrastructure financing. Thus, the government needs to draw up a definitive plan as regards where these repatriated funds will be channeled. Mrs. Hartati firmly believes that channeling repatriated funds into the real economy, such as into factory construction, may ultimately have a positive impact upon the economy, while also having a direct effect upon the general population.
Meanwhile, in support of the President’s program, Minister Sri Mulyani has asserted in her LinkedIn profile that she appreciates President Joko Widodo’s decision to re-appoint her as Minister of Finance.
“I will offer all of my energy to support the country’s development programs for a better Indonesia,” Minister Mulyani stated.
Additionally, the Minister also expressed her gratitude to Jim Yong Kim, the President of the World Bank Group, for the opportunity to serve as the World Bank Group’s Managing Director over the course of the last six years.
President Joko Widodo and Vice-President Jusuf Kalla finally announced the second reshuffle of their Working Cabinet for the 2014-2019 period from Jakarta’s Merdeka Palace yesterday (Wednesday, 27 July, 2016). Nine new names in total have been appointed as ministers, while four ministers have been moved.
The four moved ministers are Luhut Binsar Panjaitan, who becomes Coordinating Minister of Maritime Affairs; Sofyan Djalil, who becomes Minister of Agrarian Affairs and Spatial Planning; Bambang Brodjonegoro, who becomes Minister of National Development Planning/Head of National Development Planning Agency (Bappenas); and Thomas Lembong, who is now the Head of the Indonesia Investment Coordinating Board (BKPM).
The nine new ministers are Wiranto, who becomes Coordinating Minister of Political, Legal and Security Affairs (replacing Luhut Binsar Panjaitan); Muhajir Effendi, who becomes Minister of National Education (replacing Anies Baswedan); Enggartiasto Lukita, who becomes Minister of Trade (replacing Thomas Lembong); Airlangga Hartarto, who becomes Minister of Industry (replacing Saleh Husin); Budi Karya Sumadi, who becomes Minister of Transportation (replacing Ignasius Jonan); Archandra Tahar, who becomes Minister of Energy and Mineral Resources (replacing Sudirman Said); Asman Abnur, who becomes Minister of State Apparatus and Bureaucratic Reforms (replacing Yuddy Chrisnandi); Eko Putro Sanjoyo, who becomes Minister of Villages, Disadvantaged Regions and Transmigration (replacing Marwan Jafar); and finally Sri Mulyani Indrawati, who becomes the Minister of Finance (replacing Bambang Brodjonegoro).
One of the highlights of the reshuffle is undoubtedly the reinstatement of Sri Mulyani, the former Minister of Finance during the previous administration of President Susilo Bambang Yudhoyono, just as the tumultuous implementation of tax-amnesty policy by the government swings into full effect. Indeed, Minister Sri Mulyani is now responsible for the effective implementation of Law No. 11 of 2016 on Tax Amnesty (Tax-Amnesty Law).
Obviously, having been passed into law, the Tax-Amnesty Law must now be fully implemented, despite its many perceived pros and cons. On the one hand, many Indonesian citizens believe that the Tax-Amnesty Law runs contrary to the 1945 Constitution. In fact, the One Justice Foundation (Yayasan Satu Keadilan - YSK) and the Indonesian People’s Resistance Union (Serikat Perjuangan Rakyat Indonesia - SPRI), in conjunction with two Indonesian Citizens named Samsul Hidayat and Abdul Kodir, have now filed for a judicial review of this particular piece of legislation by the Constitutional Court (MK).
On the other hand, various ministries and government institutions have begun to support the implementation of the Tax-Amnesty Law, according to their various authorities. The BKPM, for example, is currently formulating a scheme which will enable tax-amnesty participants to channel and invest their assets in Indonesia.
Moreover, many economists have ventured suggestions and inputs as regards the implementation of this new policy. One of these economists is Enny Sri Hartati, Director of the Institute for the Development of Economics and Finance (Indef), who asserts that fund repatriation is an important part of the effort being made by the government to collect tax from funds and assets which are currently parked outside Indonesia.
Mrs. Hartati further believes that any repatriated funds should be channeled into the real economy and infrastructure financing. Thus, the government needs to draw up a definitive plan as regards where these repatriated funds will be channeled. Mrs. Hartati firmly believes that channeling repatriated funds into the real economy, such as into factory construction, may ultimately have a positive impact upon the economy, while also having a direct effect upon the general population.
Meanwhile, in support of the President’s program, Minister Sri Mulyani has asserted in her LinkedIn profile that she appreciates President Joko Widodo’s decision to re-appoint her as Minister of Finance.
“I will offer all of my energy to support the country’s development programs for a better Indonesia,” Minister Mulyani stated.
Additionally, the Minister also expressed her gratitude to Jim Yong Kim, the President of the World Bank Group, for the opportunity to serve as the World Bank Group’s Managing Director over the course of the last six years.