State Credit Collection to be Tightened

Wandrik Panca Adiguna
Wandrik Panca Adiguna - 20 Desember 2010  |  02:09 WIB

JAKARTA: The government has tightened efforts for state credit collection by making its position at the same level with tax credit in the State and Regional Credit Bill.

Hadiyanto, the Director General of State Assets at the Ministry of Finance, explained the settlement of tax credit all this had always been a number one priority. In the future, he continued, all state credits would be treated equally since in principle they belonged to the state coffers. "If one debtor owes money to two state institutions, both institutions have equal rights to collect their credits. It won't be a problem since the money will all flow into the state coffers," he said last weekend. According to him, the clause on the policy would be included in the Bill, which was being harmonized by the Ministry of Justice and Human Rights. The Bill would also make a separation between State-owned enterprises (SOEs) credits and state credits. He explained in principle state credit was different from tax credit, the latter of which was managed by the Directorate General of Taxation."There are two things that the people cannot run away from, namely death and tax. So, the Directorate General of Taxation has huge privilege," said Hadiyanto. Soepomo, the Director of State Credit at the Directorate General of State Assets, added the Taxation Law regulated that tax credit was higher than other state credits, leading tax credit to be prioritized to be settled. "So, for example, if the State Credit Affairs Committee [PUPN] has put into auction a debtor's house for IDR100 million on state credits, the money will go to pay for tax credits if the debtor also owes the Directorate General of Taxation. If there is still some money left, they can be used to settle other state credits." (wiw)

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