REPUBLIKA.CO.ID, SEMARANG -- The government's tax amnesty policy is a good strategy to trigger accelerated development, Central Java Regional Office of Tax Directorate General Chief I Awan Nurmawan Nuh stated.

"Large amount of funds are needed to speed up development programs, particularly related to the infrastructure sector, but tax amnesty can be a solution," Nuh stated at a media gathering in Semarang on Wednesday.

According to Nuh, on the fiscal side, a tax amnesty program is expected to finance the 2016 budget in the short term.

"Moreover, this program is the beginning of the tax reform process in Indonesia and can be part of the government's efforts to broaden the tax base and improve tax compliance to achieve optimum and sustainable tax revenues," he explained.

In addition, the monetary side of this program is expected to offer additional liquidity to the country's financial system and help strengthen the rupiah.

"Through this policy, the government also encourages the public to play a greater role in the nation's development," he affirmed.

With the implementation of the tax amnesty policy, it is expected that the funds of local investors, which are still circulating in foreign countries, can be channeled back to Indonesia.

In the meantime, Elfindri, an economic observer at the Andalas University in West Sumatra, remarked in Padang on Tuesday that the tax amnesty could trigger a massive capital inflow into Indonesia.

"It is merely a strategy to prompt more capital inflow from abroad to Indonesia. How else can those who keep their money abroad be taxed?" Elfindri stated.

Elfindri lauded the tax amnesty program launched by the government but pointed out that its implementation can be a complicated process as it would require hordes of tax personnel.

"It is still not known whether the tax personnel have the capacity to implement this plan," he emphasized.

Elfindri also suggested that a deadline be set for Indonesian citizens stashing their money abroad, even in tax havens, to bring the same back to the country.

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