Jakarta, 11 February 2004 – The Coordinating Minister for Economic Affairs, Dr. Dorodjatun Kuntjoro-Jakti, reported yesterday to President Megawati Soekarnoputri the progress of the implementation of the economic program of the Government’s Economic Package for the month of January 2004. A summary of the key measures of the Economic Package, which is also known as “the White Paper”, reported by the Coordinating Minister is as follow:

A. Measures to Reduce Money Laundering

The Government has issued 2 presidential decrees on the Remuneration System and the Staffing of the Center for Financial Intelligence Unit (PPATK) in January 2004. The issuance of two decrees have completed the all four decrees required by the Center to operate effectively;
At the same time, the Government has also issued another Presidential decree on National Committee on Money Laundering chaired by the Coordinating Minister for Political and Security Affairs;
The Chairman of PPATK has just issued yesterday a decree on Guidance on Analyzing and Reporting Suspicious Financial Transactions for Financial Agencies.

B. Measures to Reform Tax and Customs Administration

The Director General for Tax (DGT) has issued a Directive on Charter of Taxpayers’ Rights as part of the Government’s effort to improve tax administration and quality of service to taxpayers;
The DGT has been successful in improving the conditions for obliged tax payers and exceeded the January 2004 target of 250 taxpayers, by completing 386 taxpayers who have settled their payments;
The DGT has also signed MOU with tax ombudsman to improve tax administration;
The Director General for Customs and Excise has completed the new price database for 200 selected commodities as part of the measure to reform Customs;
Meanwhile, the Government’s action plan to submit a draft of Tax Law by January 2004 to the Parliament still waits for President’s approval.

C. Measure to Increase Efficiency of Government Expenditure

The Minister of Finance has issued decree No. 357/2003 to revise decree 35/2003 on lending foreign loans to regional governments.

D. Measure to Increase Capability of the Regions

The Minister of Finance has issued decree No. 548/2003 on Management of Non-Reforestration Fund in order to assist lagging regions’ capability in improving basic services in health, roads and irrigation.

 Source :  Office of the Coordinating Minister for Economic Affairs