Jakarta (ANTARA) – Indonesia and Singapore are stepping up bilateral negotiations to strengthen financial data exchange mechanisms, with the aim of improving corporate oversight and tax compliance in both countries.
Director General of Taxes at the Finance Ministry Bimo Wijayanto said the bilateral cooperation extends beyond conventional tax revenue collection to address issues of corporate accountability, including land and forest fires, transfer pricing, and underinvoicing.
“We are discussing what data can be exchanged to strengthen corporate compliance, both in Indonesia and in Singapore,” Bimo said during a media briefing in Bogor, West Java, on Thursday (November 12).
According to Bimo, Singapore is one of Indonesia’s key partners in financial information exchange, with a high volume of transactions and a significant value of shared data.
He noted that the collaborative initiative is coordinated by the Ministry of Foreign Affairs and involves relevant ministries and government agencies.
From the Finance Ministry, the initiative involves the Directorate General of Taxes, as well as divisions responsible for financial data management and international trade.
“This is also aligned with other reform efforts, such as governance reforms in the management of critical and strategic minerals, as well as natural resources, including palm oil,” Bimo explained.
Meanwhile, the Directorate General of Taxes is working with PT Danantara Sumberdaya Indonesia (DSI) to address transfer pricing practices and underinvoicing involving three strategic commodities: crude palm oil (CPO), coal, and ferroalloys.
“We are actively involved in this to ensure that reconciliation processes function effectively, allowing us to prevent potential misinvoicing – as well as transfer pricing practices that, in effect, disadvantage our nation as the source of the economic activity – from the very outset,” Bimo added.
The two governments continue to explore joint solutions, including the standardization of operational frameworks and the possibility of imposing cross-border sanctions, if necessary.
“What is currently being agreed upon is how we can work together to – in quotation marks – formulate solutions and, if deemed necessary, establish sanctions between the countries involved,” Bimo concluded.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Primayanti
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