Indonesia received positive news in the economic sector after S&P Global Ratings has again maintained Indonesia’s credit rating at BBB level with a stable outlook. At the same time, the government also emphasized that there will be no increase in tax rates in the medium termbut will instead focus on expanding the tax base through increasing taxpayer compliance and modernizing the tax system.
Rank BBB is a category investment gradewhich shows that Indonesia is considered to have a good ability to fulfill its financial obligations and has a relatively low level of investment risk. S&P’s decision is a positive signal for global investors that Indonesia’s economic conditions remain stable even though the world is still facing an economic slowdown, geopolitical uncertainty and commodity price fluctuations.
S&P assesses that Indonesia’s economic stability is supported by several factors, such as positive economic growth, disciplined fiscal management, a strong banking sector, adequate foreign exchange reserves, as well as various economic reforms that the government continues to carry out. By maintaining investment grade status, Indonesia is expected to continue to attract foreign investment, keep government borrowing costs competitive, and strengthen business confidence.
On the other hand, the government emphasized that it would increase state revenues will not be done through an increase in tax rates. In return, the government will expand the tax base by increasing taxpayer compliance, accelerating the digitalization of tax administration, expanding the scope of sectors that pay taxes, and reducing tax avoidance practices. This strategy aims to increase state revenues without increasing the burden on society and the business world.
Combination between international confidence in the Indonesian economy through the level of BBB which remains stable and certainty that there will be no new tax increases It is hoped that this will create a more conducive investment climate. This policy also provides certainty for business actors to continue to expand, open new job opportunities, and encourage sustainable economic growth.
Nevertheless, Indonesia continues to face a number of challenges such as the global economic slowdown, geopolitical tensions and uncertainty on world financial markets. Therefore, the government needs to continue to maintain fiscal discipline, strengthen economic reform, and increase the effectiveness of the tax system so that economic stability can be maintained in the long term.
For more information, please visit:
BolaIndoHub
SportivoID
Rank BBB is a category investment gradewhich shows that Indonesia is considered to have a good ability to fulfill its financial obligations and has a relatively low level of investment risk. S&P’s decision is a positive signal for global investors that Indonesia’s economic conditions remain stable even though the world is still facing an economic slowdown, geopolitical uncertainty and commodity price fluctuations.
S&P assesses that Indonesia’s economic stability is supported by several factors, such as positive economic growth, disciplined fiscal management, a strong banking sector, adequate foreign exchange reserves, as well as various economic reforms that the government continues to carry out. By maintaining investment grade status, Indonesia is expected to continue to attract foreign investment, keep government borrowing costs competitive, and strengthen business confidence.
On the other hand, the government emphasized that it would increase state revenues will not be done through an increase in tax rates. In return, the government will expand the tax base by increasing taxpayer compliance, accelerating the digitalization of tax administration, expanding the scope of sectors that pay taxes, and reducing tax avoidance practices. This strategy aims to increase state revenues without increasing the burden on society and the business world.
Combination between international confidence in the Indonesian economy through the level of BBB which remains stable and certainty that there will be no new tax increases It is hoped that this will create a more conducive investment climate. This policy also provides certainty for business actors to continue to expand, open new job opportunities, and encourage sustainable economic growth.
Nevertheless, Indonesia continues to face a number of challenges such as the global economic slowdown, geopolitical tensions and uncertainty on world financial markets. Therefore, the government needs to continue to maintain fiscal discipline, strengthen economic reform, and increase the effectiveness of the tax system so that economic stability can be maintained in the long term.
For more information, please visit:
BolaIndoHub
SportivoID
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