The Efffects of a Strengthening Rupiah:

Oil and Gas Income Tax Expected to Decrease
21 Agustus 2001

TEMPO Interactive, Jakarta:Oil and Gas Income Tax is
expected to decrease because of the strengthening of
the rupiah against the US dollar. "It will surely
decrease," Director-general of taxes Hadi Purnomo
announced to the press after attending a meeting
between the IMF and the Indonesian Economy Team this
afternoon (21/8). However, the financial institutions
are yet to decide the new tax rates because the US
dollar remains unstable.

Purnomo explained that the government had listed Rp 25
billion of income in taxes from oil and gas in a year
when the rate of US dollar was Rp 11,000. "Therefore,
we are now considering how far we will lower taxes,"
he said.

Regarding the income of the State Budget from the tax
sector, Purnomo explained that 98.85 percent of the
total target of Rp 97.7 trillion was fulfilled by
the end of June 2001, six months earlier than expected
(December 2001). So far, the government has a Rp 500
billion surplus in income taxes. "At the end of
July 2001, the total income of the taxes amounted to
Rp 92.188 trillion," he said.

Purnomo was reluctant to answer questions about the
possibility of revising the State Budget 2002 during
the meeting with the IMF Team. "Just wait and see.
The laws have not even been made yet. And it may not
be revised," Purnomo said.
(Juke Illafi Karuniani)