After launching research result on March 28 2019 in the Cikini area of Central Jakarta and discussed with the Minister of Maritime Affairs and Fisheries, Susi Pudjiastuti, on April 1 2019 at her residence, Perkumpulan Prakarsa continue "road show“Illicit Financial Flow or Illicit Financial Flows at the Ministry of Finance on May 23, 2019.
Association Prakarsa specifically invited by the Directorate of Examination and Collection, Directorate General of Taxes, Ministry of Finance to take part in the Workshop on Guidelines for Examination of Taxpayers in the Natural Resources Sector. The event was opened directly by the Director of Examination and Billing, RM Wahyu Santoso. Widya Kartika and Rahmanda Muhammad Thaariq were lined up as speakers to represent the Association Prakarsa and accompanied by the Program Manager, Herni Ramdlaningrum. The event was attended not only by the internal Directorate General of Taxes, but also the Fiscal Policy Agency and the Directorate of Customs and Excise.
At the event, Association Prakarsa explains that illicit financial flows are money or capital that is either processed, transferred or used illegally. Illegal financial flows are an important issue because they are related to the issue of tax avoidance (tax avoidance), tax evasion (tax evasion) and money laundering from criminal activity. By using the method trade misinvoicing, Association Prakarsa estimated illicit financial flows in coal and copper export commodities during 1989-2017 to be US$34,2 billion and US$20,22, respectively. As a result of illicit financial flows, Indonesia is estimated to have lost tax revenue from the coal commodity of US$5.325 million and US$665 million from the copper commodity. Not only that, Indonesia is estimated to lose royalty revenue from these two commodities during 2000-2017 amounting to US$2.961 million. What's more, there are many countries that claim imports from Indonesia but Indonesia does not record them, and vice versa. Therefore, Association Prakarsa provide policy recommendations for the Ministry of Finance to tighten supervision in the field, audit reports of exporters, harmonization of data across countries and the need to review applicable business incentives.
