Scams in the City: Car Trouble

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Scams in the City: Car Trouble-

Buying a car online or ‘winning’ one as a prize can be risky business in Indonesia, but even more risky is renting a hire car to a purported celebrity.

A failed singer exploited his minimal celebrity status by renting dozens of cars and then pawning them for quick cash.

The perpetrator was Jajang R. Haris (28), a would-be celebrity who was a contestant on Kontes Dangdut Indonesia (KDI), a singing competition show that first aired on the TPI network and is now broadcast by MNCTV.

Jajang appeared on the first season of KDI in 2004 and claimed to have reached the finals. But his singing career did not take off. Instead, he ended up working as an extra on soap operas and in films – a job that does not pay well for local actors in Indonesia.

Six months ago, Jajang decided to supplement his income by scamming rental car dealers in Depok and Bogor, south of Jakarta. He and his two accomplices, Didi Ahmadi and Rizki, would rent cars and then pawn them for as little as Rp.5 million each.

Jajang’s modus operandi was to approach rental owners and explain that he and his crew needed a couple of cars to travel to shooting sessions for movies and TV shows. He would show them YouTube clips of his performances, as well as some social media photos of his dubious celebrity status, as if this would make him more trustworthy. He was often able to rent cars without providing any form of collateral or guarantee.

The gang ended up stealing 43 rental cars, including two belonging to a member of the Army’s Strategic Reserve Command (Kostrad).

Depok Police began investigating Jajang after one rental owner, Farabi Anggriawan (30), on May 5 complained the singer had failed to return two cars which had been rented for Rp.3 million for 10 days.

Jajang and Didi were arrested last week, but Rizki was still on the run. Police said most of the stolen cars were Toyota Avanzas and Daihatsu Xenias. As of last week, police had managed to recover 22 of the vehicles.

On May 25, Jajang appeared at a police press conference. Wearing a balaclava and handcuffs, he tried to appear contrite, offering an apology to all victims and “anyone who feels aggrieved” by his actions. He said he pawned the cars to repay his debts and cover his living expenses. Police suspect the crooks may have been supporting a drug habit and will test them for narcotics.

One of the rental owners was Sergeant Major Ponidi Wardoyo (51) of Kostrad. He said Jajang had rented an Avanza and a Toyota Etios from him in April. The rental money was initially paid for a few days, but the cars were not returned by the due date.

Ponidi visited the address Jajang had given him – a house in Leuwiliang, a small town near Bogor – but no one was there.

The military man was grateful that police subsequently recovered his cars. He said he would quit the car rental business – and sell his five cars – because it was too stressful.

Police said victims are welcome to reclaim their cars, provided can show ownership and registration documents, as well as proof of identity.

Jajang and Didi could face up to five years in jail for theft and fraud.

‘Just For Fun’

Be wary of online market places offering cars for prices that seem too good to be true. They may be stolen or non-existent.

Regha Aprilian (25), a resident of the East Java capital of Surabaya, created a fake profile for himself on a vehicle sales website. He then copied and pasted an existing advert for a car, but replaced the contact number with his own number.

Posing as the original vendor’s brother, he offered the car for Rp.65 million and soon had a buyer. The man paid a deposit of Rp.2 million in cash and Rp.9 million via bank transfer, with the remainder to be paid in instalments on delivery.

The vehicle in question had originally – and legitimately – been offered for sale by Etopia Bintarti, a hospital worker. Upon discovering the advert had been hijacked, Etopia asked to meet Regha at the hospital to discuss business. When the conman arrived, he was arrested by police.

Regha said he often shopped online and thought it would be fun to see if he could swindle people. “It was originally just for fun really. It was only one time,” he claimed.

Free Car, Not

Another common swindle involves placing fake prize coupons for cars and motorcycles inside branded food and beverage products, such as instant noodles, processed snacks, sugar-filled energy drinks and instant coffee.

The authentic-looking coupons have the logo of a big-name company, such as Bimoli, Indofood, Wings Food, Tora Bika and many others. The coupons declare the recipient has won a free vehicle, which can be claimed by calling a telephone number. Upon calling the number, the “winner” will be asked to pay for vehicle registration costs, ownership papers, a processing fee and taxes, which can amount from Rp.5 million to Rp.20 million.

Should you ever find such a prize coupon and you think it may be genuine, then call the company on its official customer service number and find out whether there really is a giveaway of cars or motorbikes. You could also consider passing the coupon on to police.

Last November, police in Semarang, Central Java, busted a syndicate that had been producing fake prize coupons that had been inserted into packaged foods. In addition to fake company logos, the coupons also featured a police stamp, a notary’s stamp and a government stamp.

Police said the group, which had seven members, earned about Rp.300 million to Rp.600 million per month from people who thought they had won “free” vehicles.

 

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Meet Indonesia’s New Ministers 2016

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Meet Indonesia’s New Ministers 2016-

On Wednesday, Indonesian President Joko Widodo announced the names of the new ministers in this year’s reshuffle.

In a bid to support effectiveness in Indonesia’s Working Cabinet (also known as Kabinet Kerja), President Widodo decided to hold a second round of reshuffles after the first one which took place in August last year.

The reshuffle has brought about the following changes:

  • Sri Mulyani Indrawati replaces Bambang Brodjonegoro as Finance Minister
  • Wiranto replaces Luhut Binsar Pandjaitan as Chief Security Minister
  • Archandra Tahar replaces Sudirman Said as Energy and Mineral Resources Minister
  • Budi Karya Sumadi replaces Ignasius Jonan as Transportation Minister
  • Airlangga Hartarto replaces Saleh Husin as Industry Minister
  • Muhajir Effendi replaces Anies Baswedan as Education Minister
  • Eko Putro Sanjoyo replaces Marwan Jafar as Villages, Disadvantaged Regions & Transmigration Minister
  • Asman Abnur replaces Yuddy Chrisnandi as Administrative and Bureaucratic Reform Minister
  • Enggartiasto Lukita replaces Thomas Lembong as Trade Minister
  • Thomas Lembong replaces Franky Sibarani as BKPM Head
  • Bambang Brodjonegoro becomes Head of the National Development Planning Agency (Bappenas)

At least two names from this new list have caught the attention of the public: Sri Mulyani Indrawati and Wiranto. Before being reassigned as the Finance Minister, Sri Mulyani had taken on the job from 2005 to 2010 under former president Susilo Bambang Yudhyono before eventually leaving for World Bank Group in 2010.

The name Wiranto has also piqued interests and received some international criticism due to his alleged involvement in cases of human rights violations in East Timor in 1999. President Widodo has entrusted the former military chief with national security and hopes that he will be able to bring reform to the justice system in Indonesia:

“I have instructed Pak Wiranto to carry out legal reform, both in national and local legislation,” the president said as reported by The Jakarta Post.

President Widodo further revealed that his decision to reshuffle was based on his motivation to tackle the economic issues in this country, particularly in erasing the widening gap between the rich and the poor.

 

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Indonesia Fights More Fires, Singapore Gets Haze

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Indonesia Fights More Fires, Singapore Gets Haze-

As Indonesia fights more fires in Sumatra, neighbouring Singapore and Malaysia grow concerned about another possible haze crisis.  

Like clockwork, Indonesia has yet again found itself facing problems with forest fires that have been growing since July 2016. The escalating situation is the second major problem of its kind in Indonesia since the crisis at the end of last year, in which fires sky-rocketed the nation’s carbon emissions tenfold. At the time, the government announced a plan to revamp the nation’s land and forest management.

Satellites from the US National Oceanic and Atmospheric Administration have detected “hotspots” again on Sumatra. The forest fire has been burning long enough for smoke to start making its way to the neighbouring countries. As such, Singapore and Malaysia are once again starting to receive haze from the archipelago.

Indonesia’s disaster agency spokesman Sutopo Purwo Nugroho recently stated that the haze is floating over the Malacca strait, and Malaysia experienced a severe influx of haze on August 19. The incident caused the country’s already moderate-to-high air pollution index to spike.

indo-haze-2

Image via Wikimedia

Haze from Indonesia entered Singapore on Friday, August 26. The country’s National Environment Agency measured its 24-hour Pollutant Standards Index, which was between 51 and 62 at 10 am. To get a better understanding of what that means, Singaporeans were advised to wear masks outside to avoid inhaling hazardous air particles.

Firefighters in Indonesia were working to extinguish the blaze at that time, and the air quality in Singapore improved the following Sunday. It’s unclear whether the levels in Singapore normalized due to human efforts or environmental factors such as a change of wind direction.

The haze which shrouds Singapore and Malaysia each year is usually caused by illegal slash-and-burn practices in Indonesia, namely in Riau. The area is a major centre of the palm oil and pulpwood industry, which makes it particularly prone to catching fire.

A “No Haze” Solution?

In response, the Natural Resources and Environment Minister of Malaysia, Wan Junaidi Tuanku Jaafar, said that Indonesia must amend its forest fires laws which still permit burning on land areas of less than 0.8 hectares. He also believes the peat soil management regulations in Indonesia are not effective, and should be changed if the nation is serious about solving its recurring transboundary haze crisis.

Singapore’s Environment and Water Resources Minister, Masagos Zulkifli, is pushing for a “no haze” solution in Indonesia. The archipelago’s National Disaster Mitigation Agency recently reported that the number of hotspots in Indonesia has dropped from what it was last year (2,356 hotspots, down from 8,247 in 2015). Zulkifli responded by saying that Indonesia needs to not just reduce the hotspots, but have them stop occurring altogether.

indo-haze-3

Image by javipolinario 

Addressing the issue, Siti Nurbaya Bakar from Indonesia’s Environment and Forestry Ministry said her country respects complaints submitted by neighbouring countries regarding haze from fires in Indonesia. However, Bakar also insists that Indonesia cannot be responsible for whether haze floats into Malaysia or Singapore. The minister claims Indonesia has been working non-stop to tackle the issue, and outsiders should withhold unnecessary comments. She assures foreign officials that the matter is being dealt with systematically.

Apart from reducing the number of hotspots, Bakar says the ministry has been executing a “multi-door” approach to combat the fires. It has put forth sanctions and civil lawsuits against corporate offenders. The minister adds that around 40 companies have been targeted. The government has also enforced a temporary moratorium on forest management permits, palm oil plantations and management of peatlands.

While Indonesia’s firefighters work to extinguish blazes in Sumatra, the nation’s Meteorology, Climatology and Geophysics Agency warned that more haze could head towards neighbouring countries in the next five days due to a change in wind direction. Singapore and Malaysia should be on the lookout.

Featured image by skeeze

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Google Indonesia to Pay US$400M Tax Bill?

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Google Indonesia to Pay US$400M Tax Bill?-

The Indonesian government continues to investigate Google’s case in a bid to ramp up tax collection.

On Monday, September 19, Indonesia’s tax officials finally paid a visit to Google’s office in Jakarta in an ongoing investigation that seeks to find out if the tech giant violated its obligation to undergo a state audit.

Head of the Jakarta Special Tax Office Muhammad Haniv revealed that if found guilty, Google could face criminal charges on audit refusal, in addition to over US$400 million in fines for 2015 alone.

Most of the company’s revenue generated in Indonesia is reportedly booked at Google Asia Pacific headquarters in Singapore. But in June, Google Asia Pacific refused to be audited, which further motivated Indonesia’s tax office to turn the case into a criminal one.

See: What Does Tax Amnesty Mean For Expats In Indonesia?

According to Haniv, Google claimed to have carried out tax planning as an excuse for its refusal. While tax planning is acceptable, Haniv emphasized that aggressive tax planning at the expense of the country’s lost revenue is indeed illegal.

In a statement to The Jakarta Post, Haniv warned Google to immediately fulfill its responsibilities. “If Google generates income from Indonesia, it has to pay taxes. It is immoral if Google refuses to do so,” he said.

Responding to allegations, Google publicly claimed to have not made a single violation of the local tax law. Regardless, the company will remain cooperative until the case is resolved.

Indonesia recently revealed its plan to narrow the budget deficit in order to fund its infrastructure programmes. Tax officials are said to be pursuing other big internet companies for back taxes also.

 

Editing by Leighton Cosseboom; featured image by Carlos Luna; video via wochit Business

 

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Ex-Health Minister Siti Fadilah Arrested for Graft

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Ex-Health Minister Siti Fadilah Arrested for Graft-

Former health minister Siti Fadillah Supari was arrested on October 24, following the national anti-graft agency’s investigation into a case of illegal procurement of medical equipment during the bird flu epidemic in Indonesia.

The ex-health minister was named as a suspect in April 2014, when she was allegedly involved in marking up prices of medical equipment during the 2007 bird flu emergency in the archipelago. The scheme resulted in at least Rp 6.8 billion (US$522,000) in state losses. Supari served as minister under the 2004 and 2009 administrations of President Susilo Bambang Yudhoyono.

The Corruption Eradication Commission (KPK) Deputy Chairman Bambang Widjojanto reported in that same year that his department was able to secure a letter signed by the KPK commissioners that authorized a full investigation of Supari’s case.

KPK accused Supari of being part of the scheme after highlighting Rp.1.37 billion (US$105,00) worth of traveller’s checks she received from Bank Mandiri. The KPK says the former health minister was bribed for pulling strings to have the medical equipment contract awarded to supplier Prasasti Mitra.

Before her questioning at the KPK headquarters in South Jakarta, Supari told reporters that she was accused of receiving bribes, although it remains unclear as to who bribed her and when the incident occurred.

uang-rupiahSee: Infamous Money Launderer Gets Just One Year In Prison

The former health minister pleaded that President Joko Widodo be fair and help make the nation a law-abiding country. “There are bigger cases that have not been processed. In my case, I am innocent but I am in detention,” said Supari.

The KPK has charged Supari for violating the Anti-Corruption Law in conjunction with the Penal Code. Her charges cover the abuse of power, violation of the law and holding office while incurring state losses and enriching oneself.

In a 2006/2007 graft case related to the Health Ministry’s medical equipment procurement, several state officials were also sentenced by the Corruption Court. Former secretary Sutedjo Yuwono of the welfare ministry was sentenced to five years in prison. Former ministry head Rustam S. Pakaya of the Health Ministry’s crisis mitigation centre got four years. Former director general Ratna Dewi Umar of the Health Ministry’s medical services department was handed three years.

Image Credits: Infonawacita, Kompasiana 

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2015 at a Glance: the Good, the Bad, and the Shocking

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2015 at a Glance: the Good, the Bad, and the Shocking-

2015 was pivotal for Indonesia in many ways, and it’s important to take stock of the 12 months that have passed. We’ve taken the liberty of compiling a list of key events that are likely to shape Indonesia’s business culture, macro-economy, and political landscape going forward in 2016.

AirAsia_X_Airbus_A330-300_copyright WikimediaJanuary 2015

Transport Ministry suspends AirAsia Indonesia

Following the disappearance and fatalities of 162 passengers on board AirAsia flight QZ8501 from Surabaya to Singapore on Sunday, December 28, 2014, the nation’s Transport Minister Ignasius Jonan temporarily suspended the airline’s Surabaya-Singapore route.

The reason for doing so was that the firm allegedly violated operational hours. Reportedly, the plane did not have a permit to fly on days other than Mondays, Tuesdays, Thursdays, and Saturdays. However, AirAsia Indonesia’s safety and security division claimed the airline complied with all rules and schedules.

It was later discovered that the plane went down in the sea near Kalimantan due to rudder problems.

 

February 2015

KPK and national police go to war

KPK copyright WikimediaPresident Joko Widodo (aka Jokowi) initially nominated Budi Gunawan as the nation’s Police Commissioner General. Previously, however, Gunawan was a high-ranking officer who failed the Corruption Eradication Commission’s (KPK) “fit and proper test” for prospective cabinet positions. The KPK immediately named Gunawan as a graft suspect, as his bank accounts were allegedly full of dirty money.

The police took revenge on the KPK by targeting its commissioners for criminal investigations. Bambang Widjojanto was accused of forcing a witness to commit perjury in a 2010 election dispute case. The police also questioned the KPK’s Chief of Ethics Abraham Samad, and released photos of him with women. Adnan Pandu Praja was accused of fraud involving a timber company in 2006.

The list of accusations went on. In the end, the president withdrew his nomination for Gunawan as Police Commissioner General.

 

March 2015

Expats don’t actually need to speak Indonesian

In January, the Minister of Manpower made a controversial statement, saying foreigners would be required to take a local language exam if they sought employment in Indonesia.

The idea raised eyebrows from foreign and local businesses, as it would surely make it more difficult for foreigners to obtain work permits. Ultimately, language exams were deemed an unnecessary burden.

Coordinating Minister for Economy, Sofyan Djalil, later said the idea “was just discourse”, and that the policy would never be implemented. The plan was likely withdrawn because powerful domestic companies that currently employ foreigners put pressure on the ministry.

 

Eight drug smugglers executed by firing squad

Eight drug smugglers executed by firing squad

April 2015

Drug smugglers executed

Despite outcry from countries including Australia, Brazil, France, and the Philippines — as well as human rights activists and the United Nations — Indonesia executed eight out of nine drug smugglers. Filipina Mary Jane Veloso’s execution was postponed at the very last minute to investigate further on her supposed status as a victim of human trafficking.

Australia’s Prime Minister Tony Abbott said his nation’s relationship with Jakarta “has suffered as a result of what’s been done.” Immediately after the executions, Australia recalled its Ambassador to Indonesia.

 

The flags of ASEAN nations raised in MH Thamrin Avenue, Jakarta, during 18th ASEAN Summit, Jakarta, 8 May 2011.

The flags of ASEAN nations raised in MH Thamrin Avenue, Jakarta, during 18th ASEAN Summit, Jakarta, 8 May 2011.

May 2015

Labour Union bemoans ASEAN Economic Community

On May 1, the Federation of Indonesian Labour made several demands of the government. Federation Chairman Santoso Widodo said the list of requests was a wakeup call for the government to take action against industries that marginalized labourers.

In addition to a great deal of political noise, the Federation called for the government to withdraw its commitment from the ASEAN Economic Community (AEC). The AEC will allow free movement of people, goods, and services across the region to achieve an aggregate gross domestic product of US$2.5 trillion and trade business worth US$1 trillion.

Some workers see Indonesia’s participation in the AEC as a bad thing because it would theoretically increase competition for jobs in the archipelago.

 

June 2015

Illegal sand dredging off Jakarta bay

In June, Thousand Islands Reagent Tri Djoko Sri Margianto reported Kapuk Naga Indah, a subsidiary of property developer Agung Sedayu Group, to Governor Ahok and the national police for stealing sand. The reason for the theft was reportedly for the purpose of building islands in the proximity of Jakarta Bay.

The People’s Representative Council said sand theft could lead to deterioration of the local marine ecosystem and it’s possible that more incidents like this could cause the Thousand Islands to disappear for good.

 

 

Mount_Raung_WikipediaJuly 2015

Airports close as volcanoes erupt

Surabaya’s Juanda international and two other airports closed after two volcanoes blasted ash and debris into the air. The closures came as millions of Muslims were returning home to celebrate the end of Ramadhan.

The week prior, travellers were also marooned when Ngurah Rai International Airport in Bali closed because of the eruption of Mount Raung, one of the most active volcanoes on Java. Four other airports in the region were also closed, leaving thousands of tourists stranded. Financial losses were reported to be worth billions of rupiah.

The precautionary closures came during a time of sensitivity and heightened turmoil for the aviation industry in Indonesia.

 

Jokowi copyright WikimediaAugust 2015

Widodo reshuffles cabinet

Economic growth slipped to a six-year low after Jokowi took office, and frustration grew in the business community over some of President Jokowi’s more contradictory policy signals.

Following a survey showing the people’s satisfaction levels toward Jokowi’s administration declined from 60 percent to 50 percent, the President decided to replace six ministers.

Jokowi said the adjustment was essentially a bid to boost an ailing economy, though analysts predicted the step would have little immediate impact.

 

Forest fires WikimediaSeptember 2015

Indonesia’s worst haze episode ever

Indonesia saw a record-breaking number of fires in Kalimantan and Sumatra this year. In early September, the Indonesian National Board for Disaster Management declared a state of emergency in six provinces. The smoke caused by the fires had destructive effects on neighbouring countries, Singapore and Malaysia.

Indonesia lost troves of biodiversity, but the haze also represented a step backward from the government’s voluntary commitment to a minimum 26 percent reduction in greenhouse gas emissions by 2020.

According to complaints filed by locals to the National Human Rights Commission, the haze caused 43,386 people in Riau and 42,887 in Samarinda to suffer from acute respiratory infections, of which two children in Jambi died.

 

October 2015

China to build Indonesia’s first high-speed train

Indonesia will have its first high-speed railway connecting Jakarta to Bandung with the help of China. At first, the government turned down proposals from both Japan and China, but in the end China revised its plan to allow construction without the use of Indonesia’s state funds.

The high-speed train is set to reach eight stations across 150 kilometres between the two cities. The project is scheduled for completion in 2019 and the train will travel at 250 kilometres per hour, with a ticket fare of around Rp.200,000 (US$16).

 

ASEANNovember 2015

Indonesia preps to enter ASEAN Economic Community (AEC)

Indonesia and other ASEAN member countries made maximal preparations to enter the common free trade era, when the AEC commences at the end of the year.

President Jokowi told reporters that Indonesia was 94.1 percent ready in terms of satisfying requirements, and that he was optimistic his administration could finalize things come the commencement on December 31.

The AEC would potentially create greater economic opportunities for Indonesia, specifically with offering goods and services to other ASEAN countries. Currently, market share in Indonesia is represented by 250 million people. As part of the AEC, the market opportunity would open up to 625 million people.

 

Setya Novanto allegedly requested a 20 percent stake in Freeport McMoRan, worth billions of dollars

Setya Novanto allegedly requested a 20 percent stake in Freeport McMoRan, worth billions of dollars

December 2015

Lawmaker scandalized, asked for billions from mining firm

Freeport McMoRan operates one of the world’s biggest gold and copper mines in Papua. The firm is in talks with the government about extending its contract in Indonesia, which expires in a few years’ time.

Earlier this month, the nation was shocked to learn that a powerful lawmaker was involved in a scandal in which he asked for a 20 percent stake in the company. House Speaker Setya Novanto allegedly requested the ownership worth billions of dollars.

Maroef Sjamsoeddin, head of Freeport McMoRan in Indonesia, claims to have made a recording of the conversation. In the alleged conversation, Novanto is said to have indicated the stake would be given to President Jokowi and Vice President Jusuf Kalla.

Novanto is also accused of saying he could ensure Freeport McMoRan’s contract would extend until 2041.

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Foreign Investors Struggle with Indonesia’s Economic Policies

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Foreign Investors Struggle with Indonesia’s Economic Policies-

Foreign investors are reportedly dissatisfied with the Indonesian government’s efforts to facilitate international business opportunities.

Earlier this week, the Foreign Ministry gathered foreign business communities and ambassadors to discuss the progress of their business activities. While attendees continue to show respect for Indonesia’s  economic policies, some of them feel that the nation must provide better services for foreign companies.

In the diplomatic chambers of commerce meeting, company executives disclosed a number of challenges commonly faced by their firms. Common conundrums are primarily related to tax, the predictability of regulations and work permits – which according to Head of Investment Coordinating Board Thomas Lembong remain as the top concerns from foreign investors.

President Director of Japan External Trade Organization Daiki Kasugahara revealed that the recent changes in tax procedures have hindered operations for his and other Japanese companies.

Other members including UK Ambassador to Indonesia Moazzam Malik also spoke out on the complicated work permits that foreign businesspeople must deal with, as they are required to extend permits every six months.

Responding to these complaints, Indonesian representatives during the event assured them that the government will continue to find ways to create a better environment for foreign businesses. Government officials are currently planning on revising tax laws like the General Taxation Law so foreign businesses will have better chances of growing in the archipelago.

Despite these issues, some members did acknowledge the nation’s improvements due to the 13 economic packages. Swedish Ambassador to Indonesia Johanna Brismar Skoog was happy to find her companies doing well while complying with the economic policies.

“Tangibly, I get fewer complaints from my companies, so that’s a sign of improvement. I also see that the goodwill and efforts to resolve the problems are there. I think things are really improving,” said Johanna Brismar Skoog as quoted by The Jakarta Post.

Featured Image via Pixabay

 

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