Impact of Access to Bank Accounts Closely Monitored

KOMPAS/RADITYA HELABUMI

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JAKARTA, KOMPAS -- Bank Indonesia is closely monitoring the impact of the implementation of the Government Regulation in Lieu of Law No. 1/2017 on access to financial information for tax purposes at commercial banks of all categories and their customers with deposits of more than Rp 1 billion (US$74,500).

Monitoring of the possibility of customers moving their funds abroad is also being carried out.

Bank Indonesia Governor Agus DW Martowardojo said monitoring of the possibility of banks being affected by the implementation of the policy and their business relations with other banks is also being conducted.

"We have reviewed and coordinated. Therefore, we conclude that there should be good communication with all stakeholders. The regulation of the finance minister and standard operating procedures should be good," Agus said at a press conference on Perppu No. 1/2017 in Jakarta on  Thursday.

Finance  Minister Sri Mulyani Indrawati, Financial Services Authority (OJK) chairman Muliaman D Hadad and Coordinating Economic Minister Darmin Nasution were also present at the press conference.

Agus gave assurances that Bank Indonesia and the OJK would closely guard the drafting of the ruling on standard operating procedures,   the implementation of the Perppu and the activities of the banks affected by the implementation of the policy.

Other matters needing close attention include the readiness of the Directorate General of Taxation (DGT), standard operating procedures, tax officials who have the authority to access financial information and how to store the data.

According to Darmin, the automatic  exchange of financial account information, which will be implemented beginning next year, will follow the same rules of the game as in the rest of world. "But there is another aspect to be considered," Darmin said.

The disclosure of financial information for tax purposes can, for example, be misused, if it is not based on a clear regulation on the authority of tax officials, he said. Darmin reminded that the institution that has the right to obtain financial information is the tax authority.

Therefore, as regulated in the Perppu, the Finance Minister  and/or the Director General of Taxation will issue the rules of implementation. "In order to ensure that the positive impact of the Perppu is not undermined by its weakness, rules of the game need to be established. There should be accountability within the DGT,”  Darmin said.

Limited Access

Darmin emphasized that the rules of the game should ensure that any tax officials  who obtain financial data should work in line with the Law Number 28/2007 on general provisions and procedures of taxation, which stipulates that any data related to the taxation of an individual or a company should not be misused.

Tax officials who can and have access to financial data should be limited. The data should only be used for tax purposes.

Sri Mulyani said the Finance Ministry assured that the authority given to the DGT to obtain and use financial information would be strictly regulated  by a Finance Minister’s decree as the implementation regulation of the Perppu. Thus, the authority to get access to financial information for tax purposes will not be misused.

Asked when the Finance Minister\'s regulation will be issued, Sri Mulyani said it would be issued as soon as possible. It is currently in the process being compiled, including harmonizing and communicating with relevant ministries and state institutions, including the House of Representatives (DPR), in order to be able to ensure the best implementation rules.

According to the terms of the automatic exchange of financial accounts information, the data of foreign customers who must be reported are those with a minimum balance of US$250,000 or about Rp 3.32 billion.

(LAS/NAD)