“There is the risk that — while not the intention of the policy — this could be interpreted as legitimizing corruption,” Philip McNicholas, an economist from BNP Paribas, commented on Monday.
“In turn, that could damage the Jokowi administration’s credibility and popularity, ultimately hurting the President’s capacity to deliver on his reform agenda,” he warned.
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Proposals for the amnesty
1. The amnesty will take the form of a special law.
2. The bill on the amnesty will be submitted to the House of Representatives this year after the deliberation
of the revision of the general tax system (KUP) law.
3. If passed, the law will be implemented this year.
4. The repatriated funds will be locked for a certain period, preventing them from being sent back overseas.
5. Financial crimes related to taxes, money laundering and corruption will be covered by the measure.
6. The amnesty is supposed to trigger a kind of national reconciliation.
7. The measure is the idea of many, including the President.
8. Proponents of the amnesty will need to convince law enforcement agencies to support it.
9. Those willing to repatriate the funds are still required to pay taxes on the funds, but will be exempt from any charges.
(Source: Excerpted from interview with Finance Minister Bambang Brodjonegoro)