UPDATE - Thousands of Indonesians protest tax amnesty program

UPDATES WITH MINISTER COMMENTS

By Ainur Rohmah

TUBAN, Indonesia (AA) – Thousands of Indonesians gathered on the streets of Jakarta on Thursday to protest against a tax amnesty program launched by the government to encourage the repatriation of undeclared overseas assets.

Between 8,000 and 10,000 -- hundreds of who traveled from other parts of the country -- marched to the presidential palace chanting slogans against the measure, which critics say lets wealthy citizens who evaded taxes off the hook.

Said Iqbal, Confederation of Indonesian Workers Union president, told those gathered, “it is definitely not fair that the rich who have not paid their taxes for years are exempted with this amnesty decision.”

He added, “we workers, with the minimum wage we are paid, we pay our taxes. But the rich are not paying taxes, and are excused with the issued amnesty. We do not accept this.”

The government of President Joko Widodo, who pledged during campaigning for the 2014 election to improve workers’ rights and develop the economy, hopes the program will see the declaration of assets worth 4 quadrillion rupiah (more than $308 billion).

Its target is to repatriate a quarter of that amount and gain 165 trillion rupiah ($12.7 billion) from the program.

The Jakarta Post reported Wednesday that the government had so far brought in 58.6 trillion rupiah ($4.5 billion).

Under the 2016 Tax Amnesty Law, those who report their assets by Friday will be subject to the lowest redemption rate, which will increase in following periods.

In response to Thursday’s protest, Finance Minister Sri Mulyani Indrawati said the government would continue with the program, which she described as “successfully executed”.

Metrotvnews.com quoted her as saying that Indonesia has broken a record with the amount of overseas assets declared over past weeks.

"Indonesia, with the amount acquired, reached 0.65 percent of the GDP,” she underlined.

Indrawati, a former World Bank managing director, said that in following through with the tax amnesty, the government aims to finance development in Indonesia and improve the welfare of the people.