Tax office insider Sigit Priadi Pramudito has been appointed to lead the notoriously corrupt tax office amid an ambitious tax target that is key to realizing President Joko “Jokowi” Widodo’s development programs.
“The new taxation director general is Pak Sigit,” said Cabinet Secretary Andi Widjajanto at the Presidential Palace on Wednesday. The legal document nominating Sigit as the official choice of the President is being prepared, along with presidential decrees for 21 other senior positions in other ministries.
Sigit, who will replace previous tax chief A. Fuad Rahmany, currently leads the prestigious large taxpayer accounts office after 18 years at the Finance Ministry.
Sigit has a dubious financial track record as his wealth jumped from Rp 13.8 billion (US$1.1 million) in 2009 to Rp 21.8 billion in 2011, according to his wealth report submitted to the Corruption Eradication Commission (KPK) in 2011.
The tax office chief is a strategic position for monitoring funds for Jokowi’s development programs in the infrastructure, maritime and agriculture sectors.
The Finance Ministry submitted 11 names, which underwent an audit by the Corruption Eradication Commission (KPK), the Financial Transaction Reports and Analysis Centre (PPATK), the National Intelligence Agency (BIN) and Vice President Jusuf Kalla.
The tax office will be responsible for collecting about Rp 1.3 quadrillion in taxes this year, a 40 percent increase from last year’s realization, which Finance Minister Bambang Brodjonegoro said would require “real extra effort”.
The Finance Ministry will add about Rp 5 trillion to the tax office budget for a reward and penalty system in collection efforts, which are expected to be more aggressive this year.
Closer monitoring of wealthy individuals and imposing travel bans on tax evaders are some of the measures the tax office intends to take to collect more taxes, according to the Finance Ministry.
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