Indonesia, located between the Indian Ocean and the Pacific Ocean along the equator between Asia and Australia, is divided into 34 provinces, with Jakarta as its capital. The official language of Indonesia is Indonesian, and the currency is the rupiah (IDR).
Indonesia, which consists of 17,508 islands and approximately 250 million people, is the world's fourth-most-populous country. It is also the world's third-largest democracy, and the world's largest archipelagic state.
With its vast natural resources and stable political climate, Indonesia has seen positive economic growth even in the face of the recent worldwide economic slowdown. Indonesia had a growth rate of 5.02% through the end of 2016.
Indonesia continues its serious efforts to promote foreign investment as well as domestic investment, capital accumulation, and the export of goods other than energy and mineral resources to expedite economic development and to become internationally competitive. A broad range of deregulatory measures have been implemented, and additional measures and tax facilities can be expected to further enhance the investment climate.
The government implemented a tax amnesty program from 1 July 2016 to 31 March 2017 that managed to collect redemption money of IDR 114 trillion (equivalent to USD 8.5 billion) and other tax revenue from the program of IDR 21 trillion, and also gathered new asset declarations amounting to IDR 4,881 trillion. This achievement has been recognised as one of the most successful tax amnesty programs in the world. Going forward, tax audit will also be focused on taxpayers not joining the tax amnesty program. The government also intends to accelerate economic growth and restructuring through asset repatriation, boost fairer tax reforms with an expanded tax base, and increase tax revenue that is very much needed, especially to fund development in the country.
As one of the leading tax practices in Indonesia, PwC Indonesia includes more than 200 professionals consisting of accountants, lawyers, and finance specialists. Our practice strives to understand your business, working together with you and contributing our expertise as tax specialists for the best outcome for your business. We not only listen to your questions and address your immediate concerns, but we also dig further to identify any other issues and needs you may have. We then work together with you to arrive at the best possible solutions.
PwC Indonesia offers services in the following areas:
- Tax advisory services.
- Tax compliance services.
- Tax dispute resolutions.
- Transfer pricing.
- Indirect tax and world trade management services.
- Mergers and acquisitions (M&A).
- International assignment services (IAS).
- Inward investment services.
- Payroll services.