PUBLICATION
by HARRY PATTIKAWA
Cross-border training and VAT
A Dutch bank challenged a UK training company for charging UK VAT on a classroom course attended in London, raising questions about where VAT should apply in cross-border B2B services and whether such training should be taxed in the UK or under the reverse-charge rules. Read more…
Split up ING and ABN Amro: they're too big
Large banks are not only too big to fail, but also too big to sue. Break them up, says Harry Pattikawa, otherwise the risks to the economy will remain incalculable. Read more…
Do not forgive SMEs their corona debt
Now that coronavirus debts are being collected from businesses, this is causing problems. Risk analyst Harry Pattikawa writes that things can be done differently. Read more…
OJK must be more independent
The newly appointed chief of the Financial Services Authority (OJK), Wimboh Santoso, has promised to improve efficiency within the OJK, such as by cutting expenses and reducing the number of its deputy commissioners. Read more…
Bank Indonesia should stop remunerating the statutory reserves
The profitability of Indonesian banks amid COVID-19 remains the highest in Asia Pacific during 2020 and remained profitable in 2021. Read more…
Redefining Bank Indonesia’s role under new governor Agus
Agus Martowardojo is an experienced banker and his new position as Bank Indonesia’s (BI) governor could bring a refreshing change to BI in fulfilling its key challenges after the establishment of the Financial Services Authority (OJK). Read more…
Why the Financial Services Authority has lost focus
The main objective of banking supervision is to promote a sound banking system. Unfortunately, the Financial Services Authority (OJK) seems to have lost focus. Indications are visible in activities performed by the OJK, such as its efforts to actively encourage the agriculture industry to use farm insurance and its commitment to support the development of the agricultural sector through synergy acceleration program inclusion. Read more…
Increasing risks of bank loans amid the pandemic
Given the great potential for NPL to deteriorate and the ailing real estate sector, the easing of LTV and restructured loan will pose significant risks to the banking sector. Read more…
Achieving more equitable prosperity through tax policy
The standard of living of the Indonesian middle to lower class has improved, but it pales in comparison with their compatriot billionaires and millionaires (in terms of American dollars). Read more…
Five adverse effects of big bank mergers
Bank Indonesia (BI) is of the opinion that Indonesia needs to merge banks so that the country can have a large bank in ASEAN, like Malaysia. Read more…
Why Bank Indonesia should disengage from TPID
It is apparently only in Indonesia where the central bank “Bank Indonesia (BI)” has a unique position in the real economy with regard to supply. Read more…
Forgiveness is not an occasional act, it is a constant attitude
The government aspiration for tax forgiveness aimed at repatriating funds that have been lodged overseas reminds us of what Martin Luther King once said, “Forgiveness is not an occasional act, it is a constant attitude”. Read more…
A conspiracy to overthrow RI's Financial Services Authority
Indonesia’s Financial Services Authority (OJK) is apparently being undermined by various parties, which could cause it to lose its supervisory effectiveness before reaching institutional maturity. Read more…