THE IMPLICATIONS OF INTANGIBLE ASSETS IDENTIFICATION WITH DEMPE IN THE INDONESIA’S TRANSFER PRICING TAX REGULATIONS

  • Abstract This study is focusing to analyze the implications of implementing the concept of function identification in the intangible assets that is discussed in Action 8-10, known as DEMPE, in the Indonesia’s transfer pricing regulations. This research method is descriptive research with more priority to in-depth interview as primary data source. The result of this research is that there is relevance to apply BEPS Action Plan 8–10 in Indonesia, DEMPE concept can be applied effectively in Indonesia to overcome various problems, and its implementation only requires less significant adjustment because implicitly DEMPE concept has been applied mainly as basic inspection. Implementation in Indonesia’s pricing transfer rules can create new regulations that are generally described in PMK and the details will be explained in PER by adjusting to the relevance in Indonesia that allows added “marketing” function in the DEMPE concept. This implementation is expected to be able to get closer to each stakeholder’s perspective regarding to the procedure of identifying intangible assets that emphasizes the analysis of economic ownership.…
    05 Sep
    05 Sep
  • Abstract This paper attempts to assess the role of FTA (Free Trade Agreement) in enhancing both the trade and investment in both levels of the country and the region. This paper chooses Indonesia as the country and five ASEAN member states (Indonesia, Malaysia, Thailand, Philippines, and Vietnam) as the regional case of study. This paper uses net export and FDI inflows as the dependent variables for trade and investment respectively. Period of analysis is 25 years from 1992 to 2016. This paper found that FTA utilization is effective to increase trade and investment at both the country and regional level with certain control variables. It found that ASEAN is ready to move from intra-regional trade to intra-regional investment. Therefore, the ASEAN Economic Community is on the right track and in the right time for ASEAN. At the  bilateral level, this study proposed that the net export surplus is the aim for the negotiation to the lower income per capita trading partner  while FDI inflow from the trading partner is the aim for the higher income one. From non-regression model, this paper found that the role of FTA center is necessary to optimize the utilization of FTA.  …
    13 Jul
    13 Jul
  • Abstract I empirically investigated the influence of residential location and housing unit characteristics on the labor force participation of childbearing women by applying quasi-experimental methods and taking a developing country’s perspective – where the family size tends to grow faster.  While the choices of residential location and housing unit characteristics are rarely exogenous, it is important to deal with the endogeneity  problem. I use instrumental variable models, with twin births and gender composition as the exogenous sources of variation in the family size, and exploit an enormous micro dataset from the Indonesian Census Population 2010. Previous works of literature have examined the effect of twin birth on the female labor supply, but less attention given to the housing decision. This study provides new evidence of a forward-looking behavior about the residential location and housing consumption due to household size effects and shows that such behavior will most likely influence the female labor supply.…
    23 Jun
    23 Jun
  • Abstract The inclusion level of DFS and Laku Pandai (inclusion of access or use of services) have reached 28% and 43%.  Nevertheless, when we define the inclusion by account ownership (inclusion of banking account), the inclusion rates drop to 5% and 25%. The lack of awareness of DFS and Laku Pandai is still considered as the major obstacle to broaden the access of financial services through agents. Laku Pandai appears more reliable in improving financial service access for the poor and people in remote areas as it may provide a more efficient access (in term of cost, distance, and time of transport) and perceived by users to provide better service quality than other formal financial services they have experienced thus far. On the other hand, DFS services seems to be more attractive toward more educated and higher income segment of society. Nevertheless, the cost of access of DFS is not much different from the cost of access of banks and other formal financial services while the quality is perceived to be less by its users. Furthermore, the efficiency of both DFS and Laku Pandai could be much improved since there is a significant overcharging in their service fees. On the account ownership, there is an indication that DFS is not a preferable financial access for people who are excluded from formal financial services while it is for Laku Pandai. The regression results also show that users of both DFS and Laku Pandai need time to open or to register an…
    12 Jun
    12 Jun
  • (Prasaran ini hanya tersedia dalam bahasa Inggris.) Mohamad D. Revindo and Christopher Gan Abstract: Small and Medium-sized Enterprises (SMEs) are more constrained to participate in export market than their large counterparts despite various export assistance provision by the government. Extant literature on SME internationalization mostly focus more on how non-exporting SMEs can become exporters than on how exporting SMEs can sustain and expand their export. This study aims to investigate the  factors affecting SMEs’ export intensity with reference to the case of Indonesia. Fractional-logit regressions were used to identify the influence of export-exhibiting factors, export-inhibiting factors, and firm and owner characteristics on SMEs’ export intensity. The evidences were collected from 497 SMEs in seven provinces in Jawa, Madura and Bali regions. The findings show that SMEs’ export intensity is affected by some firm characteristics including firm age and total employees. Export intensity is also affected by some exhibiting factors including owners’ overseas and MNC/exporting firm work experience, central government agencies’ assistance, network relationships with non-government actors, location, export market of choices and years of exporting. By contrast, export intensity is adversely affected by perceived difficulties in overcoming informational and human resources barriers, distribution, logistics and promotional barriers, financial barriers, foreign government barriers, procedural barriers and price barriers. The policy and managerial implications of the findings are discussed.…
    28 Mei
    28 Mei
  • (Prasaran ini hanya tersedia dalam bahasa Inggris.) Kiki Verico Abstract: This paper utilizes the timeframe of 2014–2018 as the period with some of the global underperformed macroeconomic indicators. This paper found that in late 2016, Indonesia’s macroeconomic indicators started shown some improvements that keep real and monetary sector’s equilibrium to be stable. This paper observes the external balance of current account, exchange rate stability, inflation and interest rate as well as consumption patterns, saving-investment gap, fiscal discipline and fiscal sustainability. It analyses the government expenditure multiplier, real and monetary sector stability and institutional coordination between fiscal authority, monetary authority, and financial service authority. Real sector improvements which have been rolling since 2017 has significantly contributed to the recent Indonesia’s macroeconomic stability. Technically, if all on the track, this will sustain during the upcoming political year of 2019.…
    11 Apr
    11 Apr
  • (Prasaran ini hanya tersedia dalam bahasa Inggris.) Muhammad Halley Yudhistira, Prani Sastiono, and Melly Meliyawati Abstract: We estimate the effect of water tariff adjustment in Tangerang city, Indonesia in November 2014 on monthly water consumption. Due to typical water-block pricing strategy, estimating water demand elasticities are likely to be complex. A unique panel monthly water consumption dataset at consumer level in Tangerang regency covering the period of January 2011–September 2016 is used. Using regression discontinuity framework, we find a 13% average tariff increase reduces 4% household water consumption on average. Further, our estimates suggest the tariff adjustment provides no effects on high-income households, industrial, and commercial consumers. We also find more elastic response of water consumption in short-run period than in long-run.…
    01 Mar
    01 Mar
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