fatf: Indonesia Strives to Become FATF Member

Indonesia is pushing to become a full member of the Financial Action Task Force (FATF) to play an important role in fighting tax evasion and promoting global tax transparency, a key goal of its G20 Presidency.

The island archipelago is a close strategic partner of India in Southeast Asia, and its government is promoting the idea of tax transparency at the upcoming G20 Summit that it is hosting.

Simultaneously, Jakarta is pushing to become a member of the FATF, ET has learnt.

India has also been seeking greater tax transparency among G20 countries and Prime Minister Narendra Modi himself has pitched for it in past summits.

“As the holder of the G20 presidency, Indonesia fully encourages an increase in tax transparency among countries. A fair and transparent international tax system is important to overcome tax evasion, prevent transfer pricing, and encourage conducive national tax policies,” said Maudy Ayunda, the Indonesian government spokesperson for the G20 Presidency.

Tax transparency and exchange of tax information are important for encouraging economic growth, especially in the post-Covid-19 recovery period. Tax transparency between countries would only have a massive impact if implemented collectively, she said.