Reinforcement Infrastructures and Tax Policy for Answering Constructive Criticism

By Rifky Bagas Nugrahanto, Employee of the Directorate General of Taxes

Nowadays, we have new infrastructures that have been completed in this year, which are the Kertajati Airport in West Java and the Ahmad Yani Airport in Central Java, which was inaugurated by President of Indonesia, Joko Widodo.

Firstly, West Java International Airport (BIJB) in Kertajati has officially operated. PT BIJB as BUMD owned West Java Provincial Government, hook many parties to finance the project worth Rp2.6 trillion. Moreover, the airport is predicted to be the second busiest airport after Soekarno Hatta International Airport. Airport which is 68 kilometers from Bandung is built on an area of ​​1800 hectares and located in Majalengka district, Kertajati Airport has a 2,500 meters x 60 meters runaway and a 2,750 meters x 25 meters parallel taxiway. With that size of runway, the airport will be able to serve the operational planes Airbus A330. In the airport complex will also be developed as an aerotropolis. Aviation industry areas such as aircraft manufacturing, maintenance repair and overhaul (MRO), and several other related industries will be built.

Secondly, Ahmad Yanis’s terminal was built with an investment of 2,075 trillion rupiah. The three-story building holds at least up to 7 million passenger per years. The airport terminal is the revamping of the Central Java sky gate. Originally a TNI air base, it is developed into a domestic civil aviation. In 2017, the number of passengers reached 4,4 million, while the capacity of the old one only accommodates 800,000 passengers. The airport terminal design adopts eco-concept airport where the most of the buildings is standing on the water. The new terminal has a building area of 58,652 square meters and the aprons can accommodate 12 aircraft.

Development of National Transportation 2018

Based on : https://www.bps.go.id/galeri#infografis2

The data shows us that on February to March, transportation users increase. It means that, adding the number of infrastructure is a solution to fulfill the needs of transportation facilities. So, the construction of this airport could be a pilot project of infrastructure development in Indonesia that can help to reduce transportations traffic especially in red-letter day for moeslim in the world .

Third, is about tax policy, nowadays government reduce the fare of final income tax to be an half. this half percent is an answer to the business acts of UMKM who feel objected to the previous percentage. This policy is intend to encourage the role of the community in formal economic activities, providing ease in carrying out tax obligations, giving more justice, and providing an opportunity to contribute to the state.

The launchings of an half percent tax policy were inaugurated by President of Indonesia, Joko Widodo on June, 22 in Surabaya and on June, 23 , 2018 in Bali. This event got a big welcome from the public. Public said that by reducing to be an half percent, it can be right thing to empower small entrepreneurs with fairness.

Index of Bussiness Tendency and Consumer Tendency Index for The First Quarter in 2018

** : estimated

Based on : https://www.bps.go.id/galeri#infografis2

So, by looking at the data, we will understand that the encouragement from the government has effectively assisted in increasing the economic capacity and business especially for the small businesses.(*)

*) The information and views set out in this article are those of the author and do not necessarily reflect the official opinion of the institution in which the author works.