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Indonesia P.7. Government Development Plans.


Government Development Plans of Indonesia.

The Indonesian government since early 2000 has operated a three tier development plan – short, medium and long term with the objective by 2025 to be an established major economic power. This is well underway, on schedule to be achieved. PWC the consulting firm have Indonesia as the 5th largest economy by 2030.

The government of Indonesia places high priority on nationwide economic and social development. It has drafted a number of ambitious objectives that should be reached by the year 2025.

These objectives include:

An orderly, developed, peaceful and socially just society
A competitive and innovative population
A just democracy
Social and developmental equality among all people and all areas in the country
To become an important global economic and diplomatic force.

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For many years I have claimed the growth of Indonesia should not be missed. Today I will add to this claim by highlighting the tax structure designed and developed in accordance with Indonesia’s long-term goals to become an established self-reliant country whilst acting as a responsible global player. 


On January 22nd 2019 The Organization for Economic Co-operation and Development (OECD) released its Corporate Tax Statistics report. Several interesting conclusions were made in the report. Firstly, (corporate) taxes that are paid by legal entities (specifically companies) remain a key source of government revenues, particularly in developing nations. Secondly, over the past two decades there is a clear worldwide trend visible, namely: falling corporate tax rates.


If we look to the period of 2000 the corporate tax rate on average was 28.6%, this was based on a survey of 94 countries. In 2018 the Corporate tax rate average was 21.4% with 20% of the countries surveyed had rates above 30%. If, you look to the chart below you will see a selection of countries detailing their tax rates. Indonesia whilst lower continues at approx. 25%. This is a measure of how reliant they are on the success of the business sector. It is also an indication that the individual salaries generally are still highly competitive in the global world. 


When you anaylse the data you start to see a competitive edge between various countries not the least Indonesia, there is a realization that inward investment is increased by a lower Corporate tax rate. 

Other points worthy of note sentiment:

CEOs in Indonesia Enter 2019 with Positive Perceptions of the National Economic Politics.


Every quarter we interpret the latest update of the Kontan CEO Confidence Index (KCCI). The KCCI is an index compiled by Kontan, an Indonesian newspaper and magazine that focuses on business and investment. Each quarter, 30 chief executive officers (CEOs) of big Indonesian companies – covering a range of sectors – are surveyed. Their feedback is important because these CEOs are decision-makers in influential companies.
The full report is available for purchase. You can purchase this report by sending an email to info@statura.co.uk.

In keeping with previous blogs here is an example/highlights of a small selection of projects underway.

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New Priok Port, Jakarta.


To ramp up the quality and quantity of its infrastructure, the Indonesian government has tasked its state-owned company Pelindo II to develop and operate an extension of the current Tanjung Priok harbour in North Jakarta, Indonesia’s busiest trading port. This new port will be known by the names New Priok Port or Kaliburu Port and will serve as a world-class port. The construction of this mega-project started in 2012 and completion is expected by 2023.
Read more about the New Priok Port email me on info@statura.co.uk I will reply with a link. 


Mass Rapid Transit (MRT) Jakarta.


The Mass Rapid Transit (MRT) project in Jakarta is a USD $1.7 billion infrastructure project aims to relieve great traffic congestion in Indonesia’s capital city. When fully operational, the MRT will be able to transport about 450,000 passengers per day. The MRT consists of two corridors: (1) the North-South corridor and (2) the East-West corridor. Currently, the North- South corridor is being constructed. This corridor will be built in two phases.
Read more about Jakarta’s Mass Rapid Transit email me on info@statura.co.uk I will reply with a link. 

Flyover Roads (Non-Toll), Jakarta.


The Flyover Roads project in Jakarta constitutes two additional non-toll roads on an altitude of ten meters above the existing roads that connect Blok M to Antasari in South Jakarta and Tanah Abang in Central Jakarta to Kampung Melayu in East Jakarta. This USD $140.8 million public project aims at reducing the constant and grave traffic congestion in parts of Jakarta by adding over seven KM of road to its infrastructure.


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Read more about Jakarta’s Flyover Roads email me on info@statura.co.uk I will reply with a link
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