REPUBLIKA.CO.ID, JAKARTA -- Chief Economic Minister Darmin Nasution has said the draft regulation of the government in lieu of law (Perppu) on Automatic Exchange of Information (AEOI) will soon be handed over to the President.
AEOI is a new global standard to reduce the possibility for tax evasion. Under AEOI all bank accounts in the world would be accessible to investigations of taxable assets.
"We will wrap up the drafting by Monday next week before it is to be handed over to the president," Darmin said after coordinating meeting on AEOI here on Tuesday.
The government, determined to fight tax evasion has decided that Indonesia would adopt AEOI in 2018.
Darmin refused to give details about the draft regulation, saying the president would decide when the Perppu is to be announced.
Finance Minister Sri Mulyani Indrawati said the formula of the Perppu is being drafted that implementation of AEOI would be in line with the standard of the Organization of Economic Cooperation and Development (OECD).
"A team would wrap up the formulation, as we already have inputs from OECD about the format of other countries already adopting AEOI," Sri Mulyani said.
She said some of the various standards are adopted in the draft Perppu that the regulation meets the international requirements to be accepted as AEOI member especially in the reporting system
"How the reporting standard is to be and how the information content would look like. That is what we have to do that Indonesia could get the most of AEOI," she said.
The Minister said she expects that the Perppu would be issued before the end of April this year that preparation for AEOI implementation could start immediately.
The government has pledged tough measure against tax evasion after the implementation of the tax amnesty program which ended by March 31.
The government has said many Indonesian tax payers have not complied with the tax amnesty program, although it was said to be the most successful ever held by countries in the world.
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