A former Prabowo aide has accused the Finance Minister of overreach by hampering the administration's efforts to establish a new agency to improve state revenue, as promised on the campaign trail last year.
di Slamet Irianto, a former tax expert on President Prabowo Subianto’s 2024 campaign team, has accused Finance Minister Sri Mulyani Indrawati of standing in the way of the President’s plan to establish a stand-alone state revenue agency.
Acording to him, Sri Mulyani had rejected the plan for administrative reasons, in addition to her perception that its establishment would not make a dent in improving state revenue.
“The impression that has surfaced in the public is that the Finance Ministry is more dominant than the President, given that [Sri Mulyani] can cancel a strategic program with just her personal opinion,” Edi said on Wednesday, as quoted by Bisnis.com.
Read also: Govt to proceed with plan to set up revenue body, Hashim signals
While campaigning for the 2024 presidential election, Prabowo said he intended to spin off the tax office and the customs and excise office from the Finance Ministry to form a stand-alone revenue agency. Edi was then among those rumored to head the agency.
The idea is not novel, and has been considered by previous administrations.
Prabowo said the structural change would allow the government to bring in more revenue, projecting that tax collection would increase to 13-14 percent of GDP by the end of 2029 from around 10 percent last year.
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