davita wroteI don't know anyone who has ever made such a declaration and frankly cannot see how RI could even apply such a rule...they hardly catch Indonesians working/earning in RI except those whose Company's with-hold salary until the annual declaration on the NPWP.
davita, actually it would be pretty easy to apply the rules if the tax authorities were even somewhat organized (which as we know is a big ask). However, were they so organized (and eventually they will be), the scenario goes something like this - bapak tax inspector asks how you fund your stay in Bali. You say from savings (if you say from pension, it's taxable and you're screwed). He asks to see your bank statements, both locally and from the overseas bank where the funds come from. He asks for proof that the income is from a savings account and is not related to income from pension, investments, etc. The burden is on you. If you don't comply or cannot prove that the funds are not income related, pak assesses you (at a minimum) based on the amount you imported into Indonesia. You owe tax, interest, penalties on this amount and depending how long you have been in the country, this could be a tidy sum. Simple really, and I believe that the good folks at the IMF would be more than happy to help Indonesia set up the necessary systems and processes to improve their tax collection. It will come. Expats are low hanging fruit, so to speak, and also have the gift of not being able to vote. Personally, I think ronb's approach is a very sensible one. Make the declaration, pay something and you won't be such an obvious or easy target.
Btw, if you can't show that you import money into Indonesia to fund your lifestyle you may be doubly screwed, as then the presumption would be that you are earning money in Indonesia (i.e., working) which would clearly have a different and equally unpleasant set of consequences unless you have organized yourself thoughtfully and paid taxes on the income.
