DenpasarHouse wroteUnfortunately, this is not correct. Once you become a Tax resident in Indonesia you must declare your worldwide income. So whatever interest you're earning on your savings needs to be declared (and I suppose the total amount of savings needs to be listed in the assets section of your Indo tax return).
If your home country has a tax treaty with Indonesia the amount of tax you've already paid will be subtracted from the amount of tax Indonesia wants you to pay. However, Indonesia usually wants more tax than a developed country because the higher tax brackets usually kick in a lot lower.
For example, if Indonesia wants 100 juta in tax but you've already paid 60 juta in your home country, then you'll only need to pay 40 juta to the Indonesian Tax department.
Technically, this is good and correct advice. However, for the time being, it is something that is difficult to enforce, as Indonesia has no way of knowing the overseas assets/income of its residents unless self-reported. This will change in the next couple of years, however, as OECD agreements on information exchange between countries come into effect. All expats spending more than 183 days in Indonesia in any 12 month period are caught in this web, regardless of visa status, so be forewarned. There are over 100 countries signed up to the treaty at this point, and they will report into a database to which Indonesia as a signatory has access.
DenpasarHouse wroteAbsolutely it will. He should have also written the amount of money he received from you as a gift on his tax return. But because it's a gift from his sister, it's not subject to income tax. (I'm not 100% on this, does "one degree of direct lineage" include siblings?)
From the info I've seen, siblings are included within the one degree of direct lineage rule - it's one relation up (parents), down (children) and 'sideways' (siblings). No uncles, aunts, nephews, nieces, grandparents, grandkids etc.
