Indonesia and Singapore pursue stronger financial data exchange
Officials are considering common operating arrangements and possible cross-border sanctions as part of efforts to improve corporate compliance.
Indonesia and Singapore are intensifying talks on sharing financial information to strengthen tax compliance and oversight of companies, Indonesian tax chief Bimo Wijayanto said at a briefing in Bogor, West Java, on 12 November.
The discussions concern which information the countries could exchange. Bimo said the cooperation also addresses corporate accountability beyond tax collection, covering forest and land fires, transfer pricing and underinvoicing. The governments are examining common operating arrangements and whether cross-border sanctions might be needed.
Bimo identified Singapore as a major partner for Indonesia in exchanging financial information, citing transaction volumes and the value of data shared. Indonesia’s Foreign Affairs Ministry is coordinating the work with other ministries and agencies. Participants from the Finance Ministry include the tax directorate and units overseeing financial data and international trade.
In a separate effort, the tax directorate is working with PT Danantara Sumberdaya Indonesia (DSI) on underinvoicing and transfer pricing involving coal, ferroalloys and crude palm oil (CPO). Bimo said effective reconciliation processes were intended to prevent potential misinvoicing, as well as transfer-pricing practices that disadvantage Indonesia as the source of economic activity.
He also linked the bilateral cooperation to wider governance reforms concerning critical and strategic minerals and natural resources, including palm oil.
