Indonesia finance minister unveils plans for major tax overhaul

"If the discussion doesn't start now, it is likely that we will miss the momentum again and the burden on the government budget will continue to be hefty," she said, adding that it was best to implement the reform at the end of 2022 to help the government meet 3% of GDP fiscal deficit target in 2023.

The minister also unveiled a programme to allow people to report undisclosed assets following Indonesia's previous tax amnesty in 2016 to 2017.

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According to a copy of the draft bill provided by a lawmaker, the government aims to give taxpayers another chance to declare hidden assets by charging a rate of between 12.5% to 30% of the asset values.

The minister also proposed an "alternative minimum tax" for loss-making businesses that continue to operate, a chance to settle tax crimes with fines, and a revision so that other parties such as electronic transaction providers can collect taxes on behalf of the government.

The bill is set to be debated with parliament's finance commission, which usually takes several months, before it is tabled for a wider parliamentary vote. The government controls more than 70% of the seats in parliament. ($1 = 14,450.0000 rupiah)