Indonesia Targets Data on Indonesian Citizens' Accounts in Their Countries of Repatriation

The Indonesian government has signed a bilateral agreement with Hong Kong for the automatic exchange of tax-related data. The government is next targeting data on Indonesian citizen (WNI) accounts held in Singapore and China. These three countries are the top five sources of repatriated funds in the tax amnesty program that ran from July 2016 to March 2017.

Singapore is the largest source of repatriated funds, amounting to Rp 83.25 trillion, or approximately 56.63 percent of the Rp 147 trillion total. Hong Kong is the third largest source, with Rp 16.28 trillion (11 percent of the total). China is fifth, with Rp 1.43 trillion (approximately 1 percent of the total).

The government has issued Government Regulation in Lieu of Law (Perppu) Number 1 of 2017 concerning Access to Financial Information for Tax Purposes. This aims to enable Indonesia to participate in the automatic exchange of information (AEOI) starting in 2018. In addition to multilateral cooperation, bilateral agreements, such as those with Hong Kong, Singapore, and China, are also needed to facilitate the exchange of data on Indonesian citizens' accounts in these three countries.