Debnath Guharoy,
AIBC National President

President's Column

Dear Members and Friends,

The work of the Indonesia Australia Business Partnership Group (IA-BPG) on the IA CEPA negotiations is done. For now. On August 2, the IA BPG members – ACCI, AIG and AIBC, KADIN, APINDO and IABC - handed over their submission to Minister Enggartiasto Lukita and Minister Steven Ciobo  Also present were Lead Trade Negotiators Deddy Saleh and Frances Lisson. 

IA-CEPA BPG Meeting in Jakarta where the position papers were handed over to the respective Trade Ministers, The Hon. Steven Ciobo (right) and new Indonesian Trade Minister Enggartiasto Lukita (centre).  The two book-ends are the Presidents of the two Bilateral Councils, AIBC and IABC.

Both Negotiators felt the report was balanced, more so than the previous submission three years ago. That is perhaps the key distinction of this unique round of consultations between the business representatives of two countries. Unique because it is the only time trade negotiators have invited the business community to opine, assist and contribute to the process. Unique because the four rounds of discussions, the informal sidebars, the teleconferences were all conducted with mutual respect, not mutual suspicion. Camaraderie, not hostility. Understanding, not posturing. The end-result can be seen in a comprehensive set of recommendations for the IA Comprehensive Economic Partnership Agreement. The paper entitled “Two Neighbours, Partners in Prosperity” can be seen here. We are hoping the agreement between the two very different neighbours will be really special. That appeal was part of the AIBC submission to the process, seen here. The Media Release that went out today in both countries can be seen here.

The 3-member AIBC team of Past-President Ian Satchwell, National Vice President Phil Turtle and myself made up the single-largest contingent. This is as it should be. After all, the “I” in our AIBC acronym stands for Indonesia. Ian not only provided continuity from the previous round in 2013 but influenced the documentation with his considerable expertise and writing skills. For us, it has been a labour of love. Because we share the belief that the two neighbours are capable of so much more, together. The current relationship leaves much to be desired. But Business can be an agent of change, a force for good. The real potential of a complementary partnership remains our focus. From Agriculture to Education, e-Commerce to Infrastructure, through to Shipbuilding and Tourism, the opportunities are endless.

The battle-hardened among us know that Indonesia isn’t an easy place to do business. At home, “Life's Good” as that famous slogan goes. If these are the primary reasons why we remain disengaged in the main, we do ourselves a great disservice. The need to transition to a new economic future is crucial to our wellbeing as a nation. Engaging with - not only exporting to - Asia in general and Indonesia in particular, remain key paving blocks for that path forward. If we cannot see that, we need our cataracts removed. Any politician who talks about “not exporting jobs” needs a conversation with Volkswagen to understand that the company would have fewer jobs to offer in Germany if not for the ones created by the brand’s prowess in China. Not exports, but built in-market as required by local regulations. Toyota and Honda would say the same about jobs created at home by their presence in Indonesia. We have got to stop the whingeing, the conversations need to be more intelligent than they have been.

No IA CEPA will make the change on its own. Businesses and entrepreneurs have got to come up with better ideas, take a more rational view of ground realities. If half the cost of building a vessel at home is labour and that makes us uncompetitive, then it makes sense to design at home and build overseas. If the landed cost of Australian cattle in any form makes it unaffordable to 80 percent of Indonesian households, it makes sense to own half a cow on the ground rather than no cow at all. If current local laws prevent our universities from opening campuses in-market in Indonesia, let’s take advantage of the newly opened windows in the Special Economic Zones to get started. The current administration’s desire to dramatically improve Indonesia’s ‘ease of doing business’ ranking is public knowledge. Their Negative List continues to shrink. We can support that process of change by engaging, in sector after non-traditional sector. Whingeing isn’t going to get us anywhere. It simply isn’t intelligent.

I say this with even greater confidence, as the IA-BPG dialogue made a few things crystal clear. The Indonesians understand the difficulties of doing business in their country. They want to make it easier, more open, more transparent. They are enthusiastic about the potential of our complementary nature. They are keen to see us engage and assist, then reap the benefits together. It’s for us now to decide whether we want to, or not. Contrary to spin, kumbaya headlines and the like, survey after survey in both countries illustrate how different we are as two people. Those differences need to be treated with respect, understanding and appreciation. There is nothing wrong with 'different'. Imagine a world full of only Donald Trumps. It is only when we learn from each other we become better people. Better, not the same. 

Your Council will continue to push for change, on all fronts: regulations, incentives and attitudes. That focus is now trained on the ‘Australia Indonesia Business Week’ and the AIBC Biennial Conference in Perth, come November.

Preparations continue apace, acceptances by speakers are pouring in. For more details of the Conference, Sponsorship Packages and Early Bird privileges, click here to take a closer look at what’s in store. The IA CEPA is more than a piece of paper, it is history in the making. It is also the backdrop to the Conference. Come and be a part of it! 

Till next month, warm regards,

Debnath

AIBC Biennial Conference: Perth, November 13-15 2016

This year, AIBC has the unique privilege of co-hosting the inaugural ‘Australia Indonesia Business Week’ with our esteemed partners, the Embassy of the Republic of Indonesia in Canberra, and the Consulate General of the Republic of Indonesia in Perth.

Hosted at Crown Perth, one of Western Australia's premier tourist attractions and entertainment precincts, The AIBC Conference 2016 is designed as an integral part of AIBW, a multi-faceted collaborative event not to be missed. More details of AIBW being held in Perth, November 11-15, will soon follow.

The theme of the AIBC Conference embraces the unique opportunity facing the two neighbours. The global economy is slowing down. So is the regional economy. Both Australia and Indonesia feel the pinch of traditional exports shrinking. Both countries need to chart a new way forward.

The Opportunity:

No two neighbours are perhaps so different. And no two neighbours are perhaps so compatible as business partners…potentially. In the main, the skills and resources of the two countries are complementary, not competitive. The problems of one are opportunities for the other. Together, they can create a new force for good, creating new jobs, new wealth…simply by taking advantage of each other’s strengths and weaknesses. Australia has the opportunity to use Indonesia’s large domestic market and large workforce. Indonesia has the opportunity to use Australian expertise to address the spectrum of developmental goals. Together, they can work the ASEAN market, the Asian market, the Indian Ocean Rim and the global market.

The Conference is taking place against the backdrop of negotiations currently in progress for the proposed Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA). The IA-CEPA promises to spark a unique new relationship, one based on respect, trust, confidence and cooperation. AIBC and its sister organisation IABC continue to play a leading role in the Indonesia Australia Business Partnership Group, designed to inform and assist the Negotiators from both countries. This year’s Conference is another contribution to that process, engaging stakeholders from both countries to voice their opinions, exchange ideas and develop deeper trust and understanding.

The Conference Program is bigger and better than ever before, featuring a “dream team” of prominent speakers and thought-provoking topics.  An impressive line-up, we’re sure you will agree.

We are confident you will enjoy the experience.  Come take a closer look at what’s in store by clicking here for the detailed agenda.

To register as a participant, please click here for more details.

To take advantage of this unique event as a sponsor, please click here for more details.

Queensland Update

Annual IndOz Business Networking Dinner

AIBC Queensland are pleased to announce the Annual IndOz Business Networking dinner will be held on Friday 26th August at Brisbane Town Hall.  

His Excellency Nadjib Riphat Kesoema (The Ambassador of the Republic of Indonesia) and Yayan GH Mulyana (Consul General of the Republic of Indonesia) will be attending as well as senior representatives from both State and Federal Governments.

We are particularly excited that Brisbane City Council is joining in to celebrate Indonesian Independence Day, and as such, Brisbane City Hall will be lit up with Indonesia's national colours of RED and WHITE during the IndOz Business Networking Dinner.

To join AIBC at this popular event, please contact QLDChair@aibc.com.au

Kathleen Turner,
Chairman-Australia Indonesia Business Council (AIBC) QLD
QLDChair@aibc.com.au

ACT Update

The ACT Branch of AIBC were please to host the Australian Ambassador to Indonesia, Paul Grigson at a lunch on 21 July 2016 at the Ottoman Restaurant.  The lunch was well attended by 70 members and guests, including a number of ACT Export Champions, SME owners, business consultants, representatives of government departments, senior university staff, AIYA members, former Ambassadors and elected local government representatives from around the Canberra region.

Ambassador Grigson provided a very entertaining and lively presentation on bilateral trade opportunities with Indonesia and in particular the benefits to flow to Canberra due to the introduction of direct flights to Singapore.  Ambassador Grigson noted that Indonesians regard a flight via Singapore to Canberra to be a ‘direct’ flight.  He also noted that this augurs well for education, trade, investment and tourism opportunities in the Canberra region.

Ambassador Grigson presentation also provided a very good overview of social media use in Indonesia and which social media platforms had the best reach with Indonesian consumers.

Tony Mitchener - ACT Chair welcoming Guests

        

            H.E. Ambassador Paul Grigson addressing the audience

AIBC ACT cordially invite their Members to attend their Annual General Meeting on 31st August 2016.  To register for this event, please click here.  Please note you are required to be a current Financial Member of AIBC to attend the AGM.
 

Tony Mitchener
Chairman - Australia Indonesia Business Council (AIBC) ACT
ACTChair@aibc.com.au
 

Tasmanian Update

A new Australia Indonesia Business Council branch for Tasmania has been established in response to the growing importance of Indonesia as a significant business and trading partner for Tasmanian product and service providers. This addition means that the AIBC now has a branch in every Australian State and Territory, together with its National Office based in Melbourne.

The Tasmanian Director of the Department of Foreign Affairs and Trade, Mr Alopi Latukefu, announced the establishment of the Tasmanian branch of the AIBC at a recent working seminar for Tasmanian business people and academics focused on doing business in Indonesia.

The Australian Ambassador for Indonesia, Mr Paul Grigson was also in attendance and gave an insightful presentation including the importance of developing constructive partnerships, sound research and building long-term relationships when undertaking business development in Indonesia.

The Tasmanian branch of the AIBC will support and compliment the work of the national body in creating business initiatives and opportunities. It will assist in implementing business networking and encouraging reciprocal economic, educational, trade and tourism activities between the two countries.

The former Tasmania Indonesia Business Council has reformed as part of the new AIBC Tasmania branch. They are now known as the Tasmanian Indonesian Arts and Cultural Society and will continue separately to assist with the facilitation of Indonesian cultural and arts activities within Tasmania.

AIBC Tasmania already has a membership of corporate and individual businesses from across the State and is welcoming other businesses who want to be part of the increasing business activity developing between Tasmania and Indonesia. The invitation is also open to students and other individuals who have a genuine interest in Indonesia and wish to be part of a mutually beneficial, dynamic, long-term relationship between Indonesia and Tasmania.

The inaugural Chair of AIBC Tasmania is Richard Lowrie who is based in the South and Deputy Chair Bruce Williams who is based in the North. For additional information and interest in membership please make contact.
 

Richard Lowrie,
Chairman-Australia Indonesia Business Council (AIBC) TAS
TASChair@aibc.com.au

Victorian Update

AIBC Victoria co-hosts a networking evening for Indonesian law professionals

On 28 July 2016, AIBC and Corrs Chambers Westgarth co-hosted an Indonesian law professionals networking evening. The inaugural event was attended by Australian and Indonesian law professionals and students brought together by a shared interest in the Australia-Indonesia relations.

Professor Tim Lindsey (Malcolm Smith Professor of Asian Law and Director, Centre of Indonesian Law, Islam and Society, Melbourne Law School) spoke on the role of law in shaping bilateral relations between Australia and Indonesia.

Professor Lindsey argued that challenges and conflicts frequently arise between geographically proximate countries. Therefore, the challenges in the Australia-Indonesia bilateral relationship are hardly surprising, especially given the enormous number of differences between these countries: ethnically, culturally, politically, religiously and legally.

The most important question is how such conflicts are handled.  Greater understanding is vital, but Australian polls shows a consistent trend in negative sentiment towards Indonesia. This is accompanied by a significant decline in the number of Australians studying Indonesian. This risks perpetuating a cycle where ignorance induces negativity and negativity propels ignorance.  At the same time, Indonesia is undergoing profound economic development, with a growing middle-class and urbanisation. The increased mobility of citizens also increases the exposure to legal consequences in the other’s jurisdiction.

In this context, Professor Lindsey explored the importance of law in mediating and expanding the bilateral relationship. Professor Lindsey noted that he has been called as an expert on Indonesian law in Australia proceedings more than ever before, reflecting increased commercial exposure to the Indonesian jurisdiction. At the same time, an institutional framework for mutual legal co-operation is lacking (including to facilitate criminal extradition and prisoner exchanges). In Indonesia, it remains difficult to enforce foreign arbitration awards and impossible to enforce foreign judgments. There is also a growing number of Indonesians in Australia jails.

In addition to Professor Lindsey’s thought-provoking insights, the evening gave those attending a great opportunity to get to know others interested in the bilateral legal relationship and opportunities.
The AIBC thanks Professor Lindsey for his valuable contribution and Corrs Chambers Westgarth for hosting the evening.  Further legal and other industry specific events are planned in the future.
 

Collaborative International Chambers Event – How to access funding to grow your business.

A collaborative initiative by the top International Chambers of Commerce, (Australia China Business Council, AmCham, German-Australian Chamber of Commerce, Australia Indonesia Business Council, Australia Arab Chamber of Commerce and Industry) this Melbourne event was developed as a demonstration of the strong relationship between levels of Government and between the Chambers and Government and their collective wish to help businesses grow sustainably.  The event was a great success with over 130 attendees who just wouldn’t go home!  An hour and a half after the show, people were still taking to each other!  The networking opportunity was obviously a big part of the night.

All levels of Government spoke about their grants & assistance programs and demonstrated their effectiveness with real world case studies featuring companies that had accessed the various grants and had successfully grown their organisations significantly. The discussion was aimed at companies and organisations operating in Australia and/or working in international trade and investment as start-ups; mature operations seeking sustainability; or organisations wishing to grow significantly.  There is assistance available for all.

There were case studies, including specific trade and investment outcomes, presented from all Government speakers and from two independent businesses who had successfully been provided with assistance from one of the grants.  These were Laser Resources Management (LRM Technologies) where Kheang Khauv their Managing Director spoke on the Industry Skills Fund (ISF) and how his somewhat confused start became a fun process of learning which ultimately ended in a significant grant being awarded which allowed LRM to refocus their strategic vision and align internal skills with that vision.

Global Education Solutions (GES) Managing Director Racquel Shroff then spoke of her experiences in obtaining the Export Market Development Grant (EMDG) through Austrade.  This enabled her company to develop a scalable model of education capable of servicing the global education needs of any region.  Without this grant Racquel said they could not have grown outside Australia and yet now they are permanently represented in India and Malaysia as well as their head office here in Australia.

At the start of the night less than 9% of attendees indicated they had accessed any form of Government Grant.  By the end, over 23% had identified a grant they were going to follow up.  to view the presentations from the evening, please click here.

             Pre-event networking session

Michael Anderson (City of Melbourne) addressing the audience

AIBC thanks Navitas for their kind support of this event. 

Wonderful Indonesia Sales Mission in Melbourne

AIBC in conjunction with the Consulate General of the Republic of Indonesia Melbourne and Ministry of Tourism Republic of Indonesia, and major sponsors Garuda Indonesia held a “Wonderful Indonesia Sales Mission” at the Pullman Melbourne at Albert Park on 15 June 2016.

The Wonderful Indonesia festival and sales mission aims to bring the two neighbouring countries closer together by bridging the cultural gap and creating engagement with the Australian public through culture and travel and tourism activities. It aims to showcase wonderful travel destinations in Indonesia.
The Wonderful Indonesia Sales Mission was officially opened by Mr Zaenal Arifin.

AIBC VIC: Annual General Meeting

AIBC VIC cordially invite their Members to attend their Annual General Meeting on 16th August 2016.  To register for this event, please click here.  Please note you are required to be a current Financial Member of AIBC to attend the AGM.
 

Murli Thadani
Chairman-Australia Indonesia Business Council (AIBC) VIC
VICChair@aibc.com.au

South Australia Update

Events for remainder of 2016

• Professor Tim Lindsey, chair of the Australia Indonesia Institute, has agreed to speak at an AIBC function later this year – date TBA.
   
• Celebrate the opening of the SA rep office in Jakarta, with an opportunity to meet the new representative – date TBA.
   
• A panel on the food sector and food security in Indonesia – possible topic ‘What Indonesia Wants – Analysis of Indonesia’s food demand to 2050’. We are looking for possible speakers and sponsors – date TBA.

AIBC SA: Annual General Meeting

AIBC SA cordially invite their Members to attend their Annual General Meeting on 16th August 2016.  To register for this event, please click here.  Please note you are required to be a current Financial Member of AIBC to attend the AGM.
 

Steven Baker,
Chairman-Australia Indonesia Business Council (AIBC) SA
SAChair@aibc.com.au

Western Australia Update

IA-CEPA Stakeholder Consultations

As part of the formulation of AIBC’s submission to the Business Partnership Group for the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA), UWA and the Perth USAsia Centre kindly hosted a forum with AIBC to capture input from a range of businesses and industry represesentatives.

Ian Satchwell (AIBC BPG Representative and former AIBC National President) led discussions with an informative presentation on AIBC's ambitions for IA-CEPA, and Dr Jeffrey Wilson from Murdoch University provided enlightening background on the “Noodle Bowl" of regional trade agreements which IA-CEPA sets out to complement and surpass.

AIBC thanks UWA and Perth USAsia Centre for their kind hosting of this event.

Note that the BPG submission is to be formally presented in Jakarta to the two Trade Ministers in the first week of August.
 

AIBC Young Professionals: Sundowner with the Department of Foreign Affairs and Trade at the West Australian Ballet

On Tuesday 26th July the West Australian Ballet hosted the Department of Foreign Affairs and Trade and the Australia-Indonesia Business Council Young Professionals (AIBC YPs) at the Company's home in Maylands. The event celebrated the upcoming tour of the West Australian Ballet to Indonesia with the Ambassador to Indonesia, H.E. Paul Grigson.

West Australian Ballet Artistic Director, Aurélien Scannella, welcomed guests to the unique opportunity to take a look behind the scenes at the West Australian Ballet rehearsals in preparation for the tour.

The event was attended by a large number of young professionals who are interested in Indonesia, including AIBC YPs members and friends, New Colombo Plan students and students participating in the Australia Awards.

The West Australian Ballet will tour Indonesia in August 2016, including Teater Jakarta on 6-7 August. The tour is a unique opportunity to showcase West Australian ballet and deepen Australia’s people-to-people links and cultural exchange with Indonesia.

Changes to AIBC WA Committee

Recently Greg Gaunt advised the AIBC Board of his resignation. The remaining WA Committee will continue to support AIBC until such time as a new apointment as Chairman is made, when a further announcement will be made.

AIBC thanks Greg for his contribution to AIBC in his time as WA Chairman.

WA Committee
WAChair@aibc.com.au

Indoview

IA-CEPA BPG Submissions

The Government accords high priority to the views and expertise of all stakeholders with interests in Australia’s commercial relationship with Indonesia. As part of the process of determining positions for the negotiations, the Department of Foreign Affairs and Trade (DFAT) is inviting further public submissions. In particular, information is sought on specific interests and issues in relation to Australia’s trade, investment and economic cooperation with Indonesia, including barriers to trade and investment faced by Australian goods and services exporters and investors in Indonesia as well as experiences with economic cooperation activities.
 
Parties who have previously made submissions on IA-CEPA are encouraged to review and update their proposals to reflect any developments.
 
Interested parties are invited to lodge their submission as soon as possible. Submissions may be lodged electronically to
ia-cepa@dfat.gov.au or by post to:
 
Free Trade Agreement Division
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221
 
All submissions will be made publicly available on the DFAT website unless the author specifies otherwise. More background information can be found on the DFAT website by clicking here.  

Indonesia and Australia

A research report on: The perceptions of Indonesians and Australians
EY Sweeney was commissioned to conduct a comprehensive
study on the attitudes of Indonesians to Australia and the
attitudes of Australians towards Indonesia.

The study involved both qualitative research and quantitative
research in Indonesia and Australia.

The Australian phase of the study was conducted over the
period October to November, 2015.

The Indonesian phase of the study was conducted across
February to June, 2016.

The report presents the key findings from the research.
While there were two distinct studies across both nations,
the research from each of the countries has been presented
side by side in this summary report to allow the reader to
easily absorb and contrast the key findings.

Objectives:
The aim of the research study was twofold and was defined
as follows…

• To understand the awareness, perceptions and
   knowledge of the citizens of each country towards the
   other nation
• To identify the influences and drivers of attitudes and
   perceptions

Methodology:
The research involved 24 focus groups and over 4,000
surveys across both countries, as outlined opposite.

The design of the methodology and the sample structure
was set in place after careful consideration and through
a consultation process involving the AIC, EY Sweeney,
academics and research experts in Indonesia. The aim was
to confirm the research approach was robust and the sample
structure as comprehensive as feasible across each country.

It is important to note that specific parameters were set
in place for the Indonesian research to reflect the focus of
the AIC and to take into account some of the challenges of
conducting research in Indonesia. This saw the quantitative
surveys conducted face to face (vs. online) to maximise reach
and some specific screening criteria were also included as
outlined opposite and in the appendix. This needs to be taken
into account when interpreting the survey results.

The areas of coverage in the focus groups and in the surveys
were mirrored in Indonesia and Australia.  To read the entire report, please click here.
 

Research finds many Australians negative and ill-informed about Indonesia

In response to AIC and EY Sweeney's article above, here is an article today by Fairfax Media's award winning journalist Jewel Topsfield. Please click here to view.
 

Indonesian Ministry Cabinet Reshuffle

JAKARTA, KOMPAS.com  - President Joko Widodo announced a cabinet reshuffle or reshuffle volume II at the Presidential Palace Complex, Jakarta (27/07/2016).

Before announcing the list of new ministers, the President explained the conditions experienced by Indonesia and what to do in the future.

President Joko Widodo is aware the challenge is always changing and the required speed in the act. Jokowi trys as much as possible so that the cabinet work faster, more effective, solid.

"So the real result as soon as possible," said Jokowi in a press conference.

Attending the press conference were Vice President Jusuf Kalla , ministers and ministerial candidates. On that occasion, Jokowi introduce them one by one. Please click here to view the new Cabinet.
 

'Foreign Exchange': Finance professionals from Indonesia and Victoria swap notes

Melbourne has hosted a group of 25 Indonesian finance professionals to support the building of networks and the sharing of expertise between Victorian and Indonesian practitioners in the growing segment of the services economy.

The group included representatives of Indonesia’s major banks, pension funds and the Indonesian Financial Services Authority (OJK) who visited Melbourne as part of the Victoria Indonesia Leadership Program, supported by the State Government of Victoria, OJK and ANZ, and delivered by Monash Business School.

The specially designed week-long programme provided participants and Victorian partners with an opportunity to discuss shared challenges with experts in their field, including Clayton UTZ on international tax and fin-tech regulation, BCG on block-chain technology, Bank Australia on internet-driven banking for regional service delivery with a small footprint strategy, and Freedom Finance on financial planning regulation.

Participants also worked on a financial market simulation activity at Monash Business School's STARLab, and undertook a practical research project in consultation with Victorian industry partners.
Program convenor Professor Edward Buckingham said, “The networks and personal friendships developed through this program served to highlight to participants from both sides the opportunities to be gained through closer collaboration.”

Indonesia’s finance sector represents a significant opportunity for Victorian professional services firms. The Indonesian banking sector has enjoyed a steady growth for the past five years, with loan growth of approximately 20 per cent and one of the highest average net interest margins regionally and even globally.

The nation’s underpenetrated banking market, large consumer base and rising middle income population is expected to continue to drive strong growth in the sector.

With the shared commitment between Australia and Indonesia to prioritise early outcomes on financial services through Indonesia-Australia Comprehensive Economic Partnership Agreement negotiations, the future looks bright for financial service exports, a key driver of the largest and fastest growing sector in the Victorian economy.

Indonesian Tax Amnesty 2016

The long-awaited Tax Amnesty Law has finally been passed by Parliament on 28 June 2016 and will be effective from the enactment date.

Aside from its controversy, this programme is intended to accelerate economic growth and restructuring through asset repatriation, boost fairer tax reforms with an expanded tax base, and increase tax revenue that is very much needed, especially to fund development in the country.

In brief, the Tax Amnesty is a waiver of tax due, administration sanctions, and tax crime sanctions which can be granted by paying Redemption Money (Uang Tebusan) as stipulated in this law. The Redemption Money is calculated by applying the relevant rate (which ranges from 0.5% to 10% depending on the type of taxpayer, whether or not the assets are being repatriated to Indonesia, and the relevant submission period) to the Net Asset Value which has not been fully reported by the taxpayer in the latest Annual Income Tax Return.

Tax Amnesty is granted on tax obligations which have not been paid or fully settled by taxpayers up to the latest fiscal year (which ended within 1 January – 31 December 2015) through assets declared using the Asset Declaration Letter for Tax Amnesty (Surat Pernyataan Harta untuk Pengampunan Pajak/SPHPP).

For further information regarding the Tax Amnesty, please click here.

To discuss the opportunities for Australian business in Indonesia, contact Wendy Hartanti of PwC at wendy.hartanti@au.pwc.com.
 

New Contract Restrictions for PMA IUJK Companies

In his latest article, Bill Sullivan of Christian Teo Purwono & Partners, looks at new regulations restricting Foreign owned companies in the construction related fields.

"A 2016 Minister of Public Works & Housing regulation restricts the right of PMA Companies to carry out construction work and construction related consultancy services.

The New Contract Restrictions have the potential to greatly limit the choices of energy, infrastructure, mining and O&G companies in developing new projects and in carrying out work in respect of existing projects.

There is clearly a growing disconnect between what Indonesia says is its new found openness to foreign investment and the reality of increasing, preferential treatment for domestic investors in some parts of the Indonesian economy."

To read this article in full, click here

Indonesia Update 2016 – ANU Canberra

The 34th annual Indonesia Update conference is to be held at The Australian National University, Canberra, on Friday and Saturday, 16-17 September 2016.

This year’s theme is "Digital Indonesia: challenges and opportunities of the digital revolution"

To learn more and register, click here.