JAKARTA Feb 3 Indonesia may soon revise the way
it taxes land ownership as part of a push to reduce wealth
inequality and increase state revenue in Southeast Asia's
largest economy, the chief economic minister said.
Among the proposed measures is a progressive tax on land
ownership, and a capital gains tax that would replace existing
taxes on land transactions, Coordinating Economic Minister
Darmin Nasution told reporters late on Thursday.
"The more land an individual or business owns, the higher
the tax rate that would be applied," Nasution said.
The government also plans to introduce a so-called "landbank
tax", targeting unutilised land held by companies and plantation
firms or individuals "without clear plans", he said.
The minister did not say when proposed tax changes will be
"Speculators are buying large areas of land, making land
prices rise sharply," Nasution said, adding that the long-term
goal of a new policy would be to make land ownership more
balanced, to keep tighter control on land prices and lift state
"Our savings are limited because we are too busy buying and
selling land. Our savings are land," he said, noting that people
preferred to invest in land over stocks, bonds or deposits.
Indonesia is eager to ramp up tax collection to reduce its
budget deficit and fund infrastructure programmes.
A tax amnesty, launched in July and lasting until March, is
President Joko Widodo's priority to get taxpayers to declare
assets - including - repatriate undeclared overseas assets and
widen Indonesia's narrow tax base.
(Reporting by Hidayat Setiaji; Writing by Fergus Jensen and
Fransiska Nangoy; Editing by Richard Borsuk)