Jakarta. Garibaldi Thohir, the chief executive officer of Indonesian coal producer Adaro Energy, and his brother, media mogul Erick Thohir, announced that they will participate in the government-led tax amnesty program on Wednesday (14/09), following the lead of other high-profile businessmen such as Sofjan Wanandi and James Riady.
According to Garibaldi, who is better known as Boy, around 70 percent of their declared assets are located in the country while 30 percent are located abroad. Both Boy and Erick declined to comment on whether they repatriated some of their personal assets.
"Boy and I, when we invest abroad, we have partners. It's impossible to force our partners to invest in Indonesia as each country has its own different system," Erick told reporters.
The brothers emphasized that they want to encourage fellow businessmen to follow suit and partake in the initiative.
"We should support the tax amnesty program because it accelerates development in the infrastructure sector, human resources and other future developments in the country," Boy said.
Yustinus Prastowo, executive director of Center for Indonesia Taxation Analysis (CITA), commended the Thohir brothers' move.
"It's a little bit late, but if these businessmen declare their assets publicly then it could improve the public's trust, showing the credibility of this program," he said.
Still, Yustinus questioned whether the program is fit for its intended purpose.
"There's a need for a thorough evaluation. Was it the initial target, implementation or the technical regulation that was faulty?" he asked.
Taxpayers have so far declared Rp 435.3 trillion ($35.3 trillion) of unreported assets, which includes Rp 101.3 trillion in offshore assets and Rp 312.7 trillion assets in the country. Only Rp 21.3 trillion of the offshore assets will be repatriated.
The government has so far received Rp 10.1 trillion in tax revenue as a result of the program, as of Wednesday.
The government targets to rake in Rp 165 trillion in additional tax revenue from the tax amnesty program, Rp 4,000 trillion in declared assets and Rp 1,000 trillion in repatriated assets.