Starting in 2019 Indonesia once again became the world’s attention when one of the ministers of Indonesia’s returned to scent Indonesia through her brilliant achievements. She is Sri Mulyani, the Finance Minister who probably gets the most appreciation and awards most often both domestically and internationally. This time the award was given by the financial media The Banker, who named her the Best Minister of Finance in Asia Pacific and Global. The award is given annually to finance ministers who are considered the best in their work to stimulate growth and stabilize the economy.
The Banker considers Sri Mulyani worthy as the best finance minister because it is based on the following factors, including The Banker appreciating the positive budget and economic achievements in the midst of the ongoing disaster that hit Indonesia. “In 2018, Indonesia faced a tragedy but was able to maintain its resilience in the direction of Finance Minister Sri Mulyani Indrawati,” the article was released on Wednesday (1/2).
The Banker mentioned the earthquake in Lombok, which Sri Mulyani responded to with a new strategy to fund the handling of natural disasters. Previously, the country relied on contingency funds of Rp 3 trillion per year. “Launched in October 2018, the strategy is to ensure government buildings starting in 2019 to safeguard and assist the rapid recovery process,” it was written.
The tragedy of the fall of the Lion Air plane in Karawang, which caused a number of Ministry of Finance employees to become victims, was also touched upon by The Banker. “When faced with tragedy, the country continued to show impressive growth,” it was written. The low budget deficit in 2018 was also appreciated. The Ministry of Finance launched a deficit of 1.76% of Gross Domestic Product (GDP), below the estimated 2.19% of GDP.
In this year, Sri Mulyani was also considered to have prepared a policy that is useful for boosting state revenues and stimulating economic growth. The policy in question is a change in the taxation system. This aims to encourage taxpayer compliance to reach 82.5% in 2019, or further away from the 2014 position of 74%. “To facilitate this growth, the process of paying taxes will be simplified,” it was written.
The Banker also touched on the policy plan for simplifying the bureaucracy in the tax and legal system to respond to the decline in Indonesia’s ranking in the 2017 Global Competitiveness Report. Then, the tax rate reduction policy for Small and Medium Enterprises (UKM) and digital tax enforcement plans for operating e-commerce companies abroad.
“The (digital) tax will affect large companies of technology service providers who often avoid paying taxes legally because they do not have a physical office in a country,” it was written.
Then, a zero percent tax rate policy for service exports. This is considered positive to encourage business in the sector. “Changes to the integral tax system with the aim of the finance minister to boost state revenues grew 12.9% in 2019,” it said.
Responding to this, the IMF Managing Director Christine La Garde congratulated the success of Sri Mulyani who was named the best finance minister. In her Twitter social media account, Lagarde congratulated her friend. According to her, that was a good result.
“Congratulations to my best friend Sri Mulyani Indrawati who was named the best Minister of Finance by The Banker. Well done. well deserved @KemenkeuRI,” twit Lagarde, as quoted by Medcom.id, Thursday, January 3, 2019.
Previously, Sri Mulyani recorded several similar awards, including the Best Minister of Finance in East Asia Pacific from Global Markets in mid-2018, the Best Minister of Finance in the Asia Pacific from FinanceAsia in 2017 and 2018, and the World’s Best Minister at the 2018 World Government Summit.