Merdeka.com – The draft national pardon law that the government and the House of Representatives (DPR) will bring forth continues to create controversy. The presence of the regulation is considered to be a reflection of injustice and the government’s defeat against tax and financial crime practices.
“We reject the national amnesty bill because it does not reflect justice and shows the government is giving up on what is done by the company,” said A.H Maftuchan, Coordinator of the Justice Tax Forum, in a press release yesterday.
On the other hand, FPB asked the government to form an anti-illegal money flow task force. Considering that Indonesia is considered to be in a state of emergency for the flow of illegal money.
“In 2003, the total illegal flow of money from Indonesia to foreign countries was estimated to have reached Rp 141.82 trillion, increasing to Rp 227.75 trillion in 2014.”
This makes Indonesia one of the five countries with the largest amount of illegal money flows in the world. That’s after China, Russia, India, and Malaysia.
Especially for mining, the increase in the flow of illegal money is considered very fantastic. During 2003-2014, the amount of the increase reached 102.43 percent or an average of 8.53 percent per year.
In 2003, the total illegal flow of money in mining was estimated to have reached Rp 11.80 trillion. Eleven years later, it increased to Rp 23.89 trillion.
“The illegal flow of money in the mining sector is caused by trade mis-invoicing transactions. This is due to rampant illegal mining operations and unrecorded export of mining commodities, ”said Wiko Saputra, Researcher of Indonesia’s Publish What You Pay (PWYP) Economic Policy.
A large amount of illegal money flows is considered to be an indication of rampant tax avoidance involving mining companies in Indonesia. Mining tax revenue is only Rp 96.9 trillion.
“Compare this with the mining sector’s gross domestic product (GDP) which reaches Rp. 1.026 trillion. This means that the mining sector’s tax revenue ratio (tax ratio) is only 9.4 percent. “