Bali Expat Forum - Bali Travel Forum

This will be of interest to Indonesian citizens and to expats holding Kitas.

From Jakarta Post today.

Govt to abolish fiscal fees in 2010

JAKARTA (JP): The government has said it would abolish fiscal fees in 2010.

Finance Minister Sri Mulyani said the government had drafted a bill removing the fees, Metro TV reported Wednesday.

Indonesian citizens are currently required to pay a fiscal fee of Rp 1 million (US$ 107) to go overseas via airport, and Rp 500,000 through seaport.

That's good news. I've never understood the purpose of this high tax anyway.

I wonder if this represents a move toward Indonesia allowing it's citizens more freedom to live and work outside of Indonesia.

The fiscal tax is a large amount for the average Indonesian, and makes travel outside Indonesia prohibitive for many. Although it is not as prohibitive as in the past - average incomes have risen over the years and fiscal tax has not. Used to be that 1 million rupiah was a household's average annual income a few years back.

I know quite a few Indonesians who spend a fortune on fiscal tax, and visas for a chance of a job in Malaysia. They barely break even, but as they say it's 'better than nothing'.

Perhaps Indonesia is wanting to go the way of the Phillipines - solve their massive unemployment by having a massive overseas workforce.

FreoGirl wrote:Perhaps Indonesia is wanting to go the way of the Phillipines - solve their massive unemployment by having a massive overseas workforce.

In relation to the political discussions on getting (more) income tax from Indonesians working on cruise ships around the world, that makes sense.

Im Indonesian live in Singapore, but i'm quiet often to Bali like 4 times a year with my family, so it's really not cheap to pay fiscal everytimes we leave Indo, i really not happy with it and i rather give the money to orphanage or charity...

Sunflower, you don't have to pay fiscal every time you leave Indonesia if you are residing in another country. Go to the Indonesian embassy in Singapore and they will put a stamp in your passport - you can come and go to Indonesia 4 times in a year without paying fiscal.
(My husband is Indonesian and he doesn't pay fiscal when he exits because he has the stamp)

exactly, if u have a residency or work permit in another country u can get that stamp and as freogirl says, it get's waived, such as it does for my wife... but nonetheless, i think it needs to be abolished...

ct

2010? Why the wait. They've been forced too move on it as ASEAN rules say its not allowed, so why wait.

Thanks.... but for my situation it's a bit difficult, as im living in Singapore but im not a permanent resident nor holding working permit for the reason which i prefer not to explain here. Beside that i have to travel every once or twice a month to different country so i don't really need any visa in Singapore except tourist visa. i know it's a bit hassle because i have to pay fiscal everytimes back to Indo, but it's just temporary as we plan to move back to Bali next year and hopefully less travel for us.
i do wish that goverment remove this soon, but apparently need a lot of meeting to change any regulation that actually make sense and usefull for it's citizen

When are they removing the 6 juta per year which we have to pay each for our retirement visa. After 5 years we have to pay a lump sum of 30 juta each, who will say that we are still alive or we have to fly to singapore and renew our visa there, after that we can pay yearly again. I do not understand this way of thinking.

Maybe if u pass away before the 5 yrs is up ur next of kin can file for a reimbursement I doubt it very much, but it would be entertaining to see the response to the proposition..

Ct

SunFlower wrote:i do wish that goverment remove this soon, but apparently need a lot of meeting to change any regulation that actually make sense and usefull for it's citizen

Yep, but its probably fair to say that in pretty much any democracy I've had the pleasure to live in the regulations required to remove something like this would take at the most two weeks to enact.

The VOA took about that long to announce then implement.

I suspect they've announced this to placate the ASEAN partners and will quietly let it fade away. It will never happen as there is too much ready cash being extracted.

Jogry

Interesting about the fee's for the retirement visa each year and then the final payment. After the 5th year you can get an Indonesia passport and I believe that is what the final payment is for.

I think I found the answer to my question earlier in this string. It's more than collecting the 1 million. It's to make domestic travel more attractive than short trips to neighbouring countries. Even though I personally benefit from domestic travel, I think it's politically unacceptable.

Quoted from balidiscovery.com.

The Chief of Tourism for Denpasar's Tourism office, Drs. I Putu Budiasa, told BisnisBali that the removal of the fiscal tax will cause domestic tourists now coming to Bali to move their holiday destination abroad.

With domestic tourism estimated to comprise 52-54% of Bali's tourism business local hotels, restaurants and tourist attractions have become dependent on the income produced by Indonesian visitors. Cheap regional airfares offered by low-cost carriers and the removal of the fiscal tax have many tourism companies worried that Indonesians may find the draw of an overseas holiday too strong to resist.

To illustrate the argument, Bisnis Bali points out that the prices for a short holiday in Bali or Singapore, including airfare and hotels, are similarly priced at Rp. 2.5 million (approximately US$270). It is feared that the 2010 elimination of the fiscal tax will remove current price disincentive for Indonesians holidaying abroad, thereby drawing an important business segment away from Bali.

spitfire wrote:The Chief of Tourism for Denpasar's Tourism office, Drs. I Putu Budiasa, told BisnisBali that the removal of the fiscal tax will cause domestic tourists now coming to Bali to move their holiday destination abroad.

Yep, that will make the other 230 million odd Indonesians happy...keep the Fiskal because Bali possibly benefits.

All of Indonesia benefits if people have free, unfettered travel.

And if the tourism chief thinks the cost of a holiday is the same in Bali as elswhere (food etc), he's obviously not traveled much himself

I always understood that this Fiscal was in fact supposed to be a pre-payment on your income tax. Theory being that if you were rich enough to travel, you were rich enough to pay tax. Tax collection in Indonesia being in the deplorable state it is, by this measure some taxes are collected on people who somehow escape the tax collection net. (A lot of people in Indonesia.)

I wonder, has anyone ever tried to bring this theory into practice? That is, tried to offset income taxes to be paid at the end of the year with these 'fiscals' already paid?