From Government of Indonesia

Finance Ministry Targets Tax Fraud

Indonesian Finance Minister Sri Mulyani Indrawati has pledged to continue a fight against tax fraud in the world's most populous Muslim country.

In an interview with The Wall Street Journal, Indrawati said getting more Indonesians to pay tax was a key step to reducing Indonesia's traditional reliance on oil revenues and loans from international donors.

Only about three million people are registered as individual tax payers in Indonesia, a country of 220 million people. Many companies also avoid paying tax. She said the government aims to increase the number of individual taxpayers to six million by next year.

Indrawati admitted part of the problem in increasing the number of tax payers has been corruption at the tax department, which falls under the finance ministry.

Foreign investors have praised Indrawati's tax initiatives, which they say are a step in the right direction.
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