Article Sidebar

Download
PDF
Statistic
Read Counter : 155 Download : 148

Main Article Content

Abstract

Indonesian government's policy to promote downstream natural resources leads to tax incentives policy intended to encourage the downstream. This study focuses on corporate income tax incentives in the form of net income reduction (tax allowance according to Article 31A of the Income Tax Law) by 30 percent for 6 years or corporate income tax reduction (tax holiday according to Minister of Finance Regulation Number 130/PMK.010 /2020) by 100 percent or 50 percent. Despite the positive or negative impact of tax incentives enactment argued in the previous studies, this study will calculate the impact on the economy provided by the mentioned tax incentive schemes quantitatively and will analyze which tax incentive scheme gives the greater impact on the economy. The analysis was carried out by using input-output analysis method to calculate the impact from output approach on secondary data in the form of the latest input output table released by Badan Pusat Statistik i.e., 2016 input output table. The result of the study shows that tax incentive in the form of tax holiday with income tax reduction by 100 percent provides greater impact on the economy than the others do. The total impact is getting greater and shows comparable results as the tax incentive rate increases. However, the result of this study implies that the implementation of tax incentives still needs the right tax incentive policy design to gain the expected results.

Keywords

Downstream Economy Input-Output Analysis Tax Allowance Tax Holiday

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Wulandari, D. (2023). Input-Output Analysis: Which Tax Incentive for Natural Resources Downstream Is Suitable for Indonesian Economy?. Ilomata International Journal of Tax and Accounting, 4(4), 668-683. https://doi.org/10.52728/ijtc.v4i4.833

References

  1. Agung, M., & Adi, E. A. W. (2022). Peningkatan Investasi Dan Hilirisasi Nikel Di Indonesia. JISIP (Jurnal Ilmu Sosial Dan Pendidikan), 6(2), 2598–9944. https://doi.org/10.58258/JISIP.V6I2.3085
  2. Anam, K. (2022). Bahlil Tegaskan Hilirisasi SDA Dilakukan Secara Sustainable. https://www.cnbcindonesia.com/news/20221011112228-4-378759/bahlil-tegaskan-hilirisasi-sda-dilakukan-secara-sustainable
  3. Ariutama, I. G. A., Prasetyo, E., & Saputra, A. H. (2021). Economics Development Analysis Journal The Impact of Asian Games 2018 on Indonesian Economy Article Information. Economics Development Analysis Journal, 4. http://journal.unnes.ac.id/sju/index.php/edaj
  4. Badan Pusat Statistik. (2021). Tabel Input-Output Indonesia Transaksi Total Atas Dasar Harga Dasar (17 Produk), 2016 (Juta Rupiah). Badan Pusat Statistik. https://www.bps.go.id/statictable/2021/04/14/2113/tabel-input-output-indonesia-transaksi-total-atas-dasar-harga-dasar-17-produk-2016-juta-rupiah-.html
  5. Barbosa, H., Gomez-Gardener, J., Gonçalves, B., Mangioni, G., Menezes, R., & Oliveira, M. (2020). Complex Networks XI: Proceedings of the 11th Conference on Complex Networks CompleNet 2020. Switzerland: Springer Nature Switzerland AG. https://books.google.co.id/books?id=mTfSDwAAQBAJ&pg=PA132&dq=calculating+shock+using+input+output+analysis&hl=id&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjJ6J654Jn_AhX2zqACHSPNAFc4ChDoAXoECAoQAg#v=onepage&q=calculating%20shock%20using%20input%20output%20analysis&f=false
  6. Chiang, A. C., & Wainwright, K. (2005). Dasar-Dasar Matematika Ekonomi (4th ed., Vol. 1). Jakarta: Penerbit Erlangga. https://books.google.co.id/books?id=_atldTGGzNQC&pg=PA106&dq=analisis+input+output&hl=id&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwiqh8iswpn_AhUd1TgGHUTmCrkQ6AF6BAgHEAI#v=onepage&q=analisis%20input%20output&f=false
  7. Eichfelder, S., Jacob, M., & Schneider, K. (2023). Do tax incentives affect investment quality? Journal of Corporate Finance, 80, 102403. https://doi.org/10.1016/J.JCORPFIN.2023.102403
  8. Esti. (2022). Pidato Presiden RI, Hilirisasi dan Industrialisasi Sumber Daya Alam Perlu Dilakukan. Kementerian Energi Dan Sumber Daya Mineral. https://www.minerba.esdm.go.id/berita/minerba/detil/20220817-pidato-presiden-ri-hilirisasi-dan-industrialisasi-sumber-daya-alam-perlu-dilakukan
  9. Grahadyarini, B. L. (2022). Hilirisasi Sumber Daya Alam Jadi Penopang - Kompas.id. https://www.kompas.id/baca/ekonomi/2022/10/30/hilirisasi-sumber-daya-berlanjut
  10. Hilman, A. M., & Ester, A. M. (2018). Peranan Sektor Industri Pengolahan dalam Perekonomian Indonesia: Model Input-Output. Media Ekonomi, 26(1), 63–76. https://e-journal.trisakti.ac.id/index.php/medek/article/view/5210/4028
  11. James, S. (2013). Effectiveness of Tax and Non-Tax Incentives and Investments: Evidence and Policy Implications. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.2401905
  12. Jensen, R. C., Mandeville, T. D., & Karunaratne, N. D. (1979). Regional Economic Planning: Generation of Regional Input-output Analysis. London: Croom Helm. https://books.google.co.id/books?id=oFcPEAAAQBAJ&pg=PA23&dq=calculating+direct+and+indirect+impact+using+input+output&hl=id&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjgs5vqypn_AhU76jgGHWtwDIs4ChDoAXoECAkQAg#v=onepage&q=calculating%20direct%20and%20indirect%20impact%20using%20input%20output&f=false
  13. Kementerian Keuangan. (2023). Wamenkeu: Kumpulkan Pajak untuk Menjaga dan Menumbuhkan Ekonomi Indonesia. Kementerian Keuangan. https://www.kemenkeu.go.id/informasi-publik/publikasi/berita-utama/Kumpulkan-Pajak
  14. Kementerian Perdagangan. (2022). Perkembangan Ekspor Non Migas (Sektor). Satu Data Perdagangan. https://satudata.kemendag.go.id/data-informasi/perdagangan-luar-negeri/ekspor-non-migas-sektor
  15. Kraal, D. (2019). Petroleum industry tax incentives and energy policy implications: A comparison between Australia, Malaysia, Indonesia and Papua New Guinea. Energy Policy, 126, 212–222. https://doi.org/10.1016/J.ENPOL.2018.11.011
  16. Liu, Y., & Mao, J. (2019). How Do Tax Incentives Affect Investment and Productivity? Firm-Level Evidence from China. American Economic Journal: Economic Policy, 11(3), 261–291. https://doi.org/10.1257/POL.20170478
  17. Meinzer, M., Ndajiwo, M., Etter-Phoya, R., & Diakite, M. (2019). Comparing Tax Incentives across Jurisdictions: A Pilot Study. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.3483437
  18. OECD. (2015). Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment. https://www.oecd.org/tax/tax-global/options-for-low-income-countries-effective-and-efficient-use-of-tax-incentives-for-investment.pdf
  19. Pitaloka, C. P., Jumiati, A., & Wibisono, S. (2022). Analisis Keterkaitan dan Multiplier Efek Sektor Industri Pengolahan Terhadap Perekonomian Nasional. Jurnal Ekuilibrium, 4(2), 11–28. https://jurnal.unej.ac.id/index.php/JEK/article/view/30759
  20. PWC. (2022). Indonesia - Corporate - Tax credits and incentives. Worldwide Tax Summaries. https://taxsummaries.pwc.com/indonesia/corporate/tax-credits-and-incentives
  21. Rahmah, A. N., & Widodo, S. (2019). Peranan Sektor Industri Pengolahan dalam Perekonomian di Indonesia dengan Pendekatan Input – Output Tahun 2010 – 2016. Economie: Jurnal Ilmu Ekonomi, 1(1), 14–37. https://journal.uwks.ac.id/index.php/economie/article/view/819
  22. Sebele-Mpofu, Favourate. Y., Gomera, D., & Sibanda, B. (2022). Tax incentives: A panacea or problem to enhancing economic growth in developing countries. Journal of Accounting Finance and Auditing Studies (JAFAS). https://doi.org/10.32602/jafas.2022.012
  23. Simanjuntak, M. H. (2023). BI: Penguatan hilirisasi SDA dukung ketahanan ekonomi nasional. https://www.antaranews.com/berita/3371787/bi-penguatan-hilirisasi-sda-dukung-ketahanan-ekonomi-nasional
  24. Stausholm, S. N. (2017). Rise of ineffective incentives: New empirical evidence on tax holidays in developing countries. SocArXiv. https://doi.org/10.31219/osf.io/4sn3k
  25. Sukhyar, R. (2018). Hilirisasi Sumber Daya Alam - Kompas.id. Kompas. https://www.kompas.id/baca/opini/2018/09/19/hilirisasi-sumber-daya-alam
  26. Sun, C., Zhan, Y., & Du, G. (2020). Can value-added tax incentives of new energy industry increase firm’s profitability? Evidence from financial data of China’s listed companies. Energy Economics, 86, 104654. https://doi.org/10.1016/J.ENECO.2019.104654
  27. Tumimomor, A. D. M., Kundhani, E. Y., Mardah, S., Hasan, M., Rajagukguk, T., Suratini, Hina, H. B., Oppier, H., Basmar, M. E., Sangur, K., Silalahi, S. P. R., Dona, E., Ferdinandus, S., Sofyan, V. R. W., Rewa, K. A., Melianna, S., Kasim, F. S., Hasnin, H. R., & Tamba, I. F. U. (2023). Pengantar Ekonomi Makro (Teori dan Kebijakan) (Hartini, Ed.). Bandung: Media Sains Indonesia. https://books.google.co.id/books?id=H2-wEAAAQBAJ&pg=PA303&dq=hilirisasi&hl=id&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjyjPnLr93-AhVUnGMGHS41B_kQ6AF6BAgGEAI#v=onepage&q=hilirisasi&f=false
  28. United Nations. (2018). Design and Assessment of Tax Incentives in Developing Countries. https://www.un.org/esa/ffd/wp-content/uploads/2018/02/tax-incentives_eng.pdf
  29. Yogi, Pradono, & Aritonang, A. (2018). Pengantar Ekonomika Wilayah: Pendekatan Analisis Praktis (1st ed.). Bandung: ITB. https://books.google.co.id/books?id=NNIAEAAAQBAJ&pg=PA73&dq=metode+input+output&hl=id&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwiY1arP4vP-AhV5g2MGHZn2AzsQ6AF6BAgJEAI#v=onepage&q=metode%20input%20output&f=false
  30. Zolt, E., & Schill, M. H. (2015). Tax Incentives: Protecting the tax base. http://www.un.org/esa/ffd/events/cd-2015-tibp-workshop.html
  31. Zwick, E., & Mahon, J. (2017). Tax Policy and Heterogeneous Investment Behavior. American Economic Review, 107(1), 217–248. https://doi.org/10.1257/AER.20140855