Tax Strategies to Boost the Economy

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The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Indonesia's Taxation Ratio Can Increase with These Two Strategies

The low taxation ratio in Indonesia has always been a topic of discussion. Indonesia can improve the taxation ratio by implementing two strategies. First, resolve four fundamental tax problems. Second, close five tax leaks. Tax revenue can increase without the need to raise tariffs that can burden the community and the business world.

The five tax leaks are, first, shadow economy which is an economic activity that is not officially recorded by the government. Second, the reduction of taxable income. Third,tax avoidance activities(tax evasion). Fourth, the practice of base erosion and profit shifting (BEPS), the impact of globalization affects the income subject to tax. Fifth, the practice of not reporting and not paying the outstanding tax burden. This tax leakage occurs because there is an outstanding tax burden that should be paid, but it is not fulfilled.

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Farmers' Welfare, Food Security Achieved

The Indonesian government has allocated a food security budget of IDR 164.4 trillion by 2026. The funds are allocated for three main focuses, namely, the production, consumption, and distribution sides of food reserves.
Currently, he said, the government has made various efforts that are expected to support this. One of them is by setting an increase in the government purchase price (HPP). Now, the HPP for grain is IDR 6,500 per kilogram (kg) as of January 15, 2025. The increase in HPP is considered to save farmers from middlemen. Farmers will prosper if their production is well absorbed and do not import.

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Hoteliers' Efforts to Lure Guests Toward the End of the Year

The hospitality industry is now cleaning up. The clamp holidays or often called long weekends left in September and December make them have to rack their brains to attract both domestic and foreign tourists to stay.
The government set a public holiday for September 5, 2025 to commemorate the Prophet Muhammad's birthday. The next national holiday will be on December 25 to commemorate Christmas and a joint leave set for December 26, 2025, until the New Year holiday in 2026.

Various tips were taken to maximize occupancy potential in the remaining two long holiday opportunities. One of them is by collaborating with airlines and holding events.

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Geopolitical and Digital Challenges, Here's How Energy Companies Maintain Security

Amidst the geographical challenges and complexities of the digital era, supply chain security as the heart of the economy has become the key to national distribution stability. Various parties, ranging from energy companies, logistics, to advanced technology developers, are now focusing on a holistic approach that combines collaboration between parties, enhancing human resource competencies, and utilizing artificial intelligence technology to secure the flow of goods and data.

Check out the strategies and efforts of energy companies ranging from Mind.ID, Elnusa, PLN, to Astra International to manage risks and anticipate security disruptions.

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Tax Incentives to Streamline the Economy

Tax incentive data is projected to continue to increase until the 2026 Draft State Budget reaches IDR 563.6 trillion, an increase from this year's allocation targeted at IDR 530.3 trillion. This addition shows how tax incentives are an important instrument in supporting economic growth and community welfare.
These incentives, which are tax expenditures, are specifically allocated to key sectors that have a broad impact on the economy and daily life. One of the main focuses is the VAT exemption for basic goods, education services, and public transportation, which is allocated up to IDR 82.1 trillion.

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Indonesia Summit 2025 by IDN Times: Indonesia Summit 2025 organized by IDN Times will be held on August 27-28, 2025 at The Tribrata Darmawangsa, Jakarta. This year's event serves as an inspiring forum for the exchange of ideas across sectors and generations. With the theme Thriving Beyond Turbulence: Celebrating Indonesia's 80 Years of Purpose, Process, and Possibility, this forum is expected to be a platform for the younger generation to collaborate and learn from leaders and prominent figures. Information regarding the series of events and how to participate can be accessed through the website indonesiasummit.com and Indonesia Summit social media.

Danantara Monitor Launching and Public Discussion: The launching event and public discussion of Danantara: Transparency and Green Industry Investment will be held on Wednesday, August 27, 2025, at 13.00-15.00 WIB in Jakarta. The event is organized by Danantara Monitor which is a platform that aims to ensure transparency and accountability in Danantara's investment activities. The discussion featured experts from several organizations, such as Chien Yen Goh from Third World Network, Bhima Yudhistira from Celios, and Yassar Aulia from ICW. The event can be watched online on the CELIOS YouTube Channel.