Indonesia's presidential contenders promise tax reform to boost revenue

FILE PHOTO: Indonesia's Defence Minister and presidential candidate Prabowo Subianto is surrounded by his supporters as he arrives at his campaign rally in Jakarta, Indonesia, January 26, 2024. REUTERS/Willy Kurniawan/File Photo

JAKARTA (Reuters) - The three main candidates contesting Indonesia's presidential elections this month are proposing to bolster government coffers by creating a new tax collection agency, despite scepticism from the tax and business community.

Policymakers in Southeast Asia's largest economy have long considered the creation of a more powerful tax institution to tackle the problem of chronically weak revenue collection, even as they have failed to address simpler solutions such as widening the tax base.