Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation
As a country with high potential for natural disaster, Indonesia can suffer from economic disruptions arising from significant decline in gross domestic income (GDP) due to financing losses caused by natural disaster. To reduce the risk of loss caused by natural disasters, the government has issued...
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Format: | Article |
Language: | English |
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Political Science Program, Universitas Negeri Semarang
2020-08-01
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Series: | Politik Indonesia: Indonesian Political Science Review |
Subjects: | |
Online Access: | https://journal.unnes.ac.id/nju/index.php/jpi/article/view/21363 |
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author | Dini Dubelmar Made Astrin Dwi Kartini Sabila Mareli Murwendah Murwendah |
author_facet | Dini Dubelmar Made Astrin Dwi Kartini Sabila Mareli Murwendah Murwendah |
author_sort | Dini Dubelmar |
collection | DOAJ |
description | As a country with high potential for natural disaster, Indonesia can suffer from economic disruptions arising from significant decline in gross domestic income (GDP) due to financing losses caused by natural disaster. To reduce the risk of loss caused by natural disasters, the government has issued disaster mitigation policies in the form of structural and non-structural policies. In 2018, the government initiated a disaster mitigation policy in the form of natural disaster insurance prioritized to protect state assets. It does not exclude the possibility that this insurance shall be given to civil society, yet an issue arises regarding the source of funding for the insurance. Tax instruments are expected to be a policy innovation to overcome the issue of financing insurance. The purpose of this study is to explore the potential and role of fiscal policy through tax instruments in the context of disaster management in Indonesia. This study applied a qualitative approach and collected data through field studies and in-depth interviews. The findings of this study indicate that the natural disaster insurance policy may adopt the concept of tax allowance on donation and zakat as stipulated in Law No. 36 of 2008 on Income Tax. This incentive provides a tax facility in the form of tax allowance on income for calculating Income Tax. The policy is expected to attract the community to participate in natural disaster insurance amid the general lack of participation in insurance in Indonesia. On the other hand, the government obtains a source of revenue to finance disaster mitigation without disrupting the economy of the country. |
first_indexed | 2024-12-21T12:03:50Z |
format | Article |
id | doaj.art-9643f9a14a5740d0b3182af1778a1cdd |
institution | Directory Open Access Journal |
issn | 2477-8060 2503-4456 |
language | English |
last_indexed | 2024-12-21T12:03:50Z |
publishDate | 2020-08-01 |
publisher | Political Science Program, Universitas Negeri Semarang |
record_format | Article |
series | Politik Indonesia: Indonesian Political Science Review |
spelling | doaj.art-9643f9a14a5740d0b3182af1778a1cdd2022-12-21T19:04:45ZengPolitical Science Program, Universitas Negeri SemarangPolitik Indonesia: Indonesian Political Science Review2477-80602503-44562020-08-015224325610.15294/ipsr.v5i2.2136310086Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster MitigationDini Dubelmar0Made Astrin Dwi Kartini1Sabila Mareli2Murwendah Murwendah3Universitas IndonesiaUniversitas IndonesiaUniversitas IndonesiaUniversitas IndonesiaAs a country with high potential for natural disaster, Indonesia can suffer from economic disruptions arising from significant decline in gross domestic income (GDP) due to financing losses caused by natural disaster. To reduce the risk of loss caused by natural disasters, the government has issued disaster mitigation policies in the form of structural and non-structural policies. In 2018, the government initiated a disaster mitigation policy in the form of natural disaster insurance prioritized to protect state assets. It does not exclude the possibility that this insurance shall be given to civil society, yet an issue arises regarding the source of funding for the insurance. Tax instruments are expected to be a policy innovation to overcome the issue of financing insurance. The purpose of this study is to explore the potential and role of fiscal policy through tax instruments in the context of disaster management in Indonesia. This study applied a qualitative approach and collected data through field studies and in-depth interviews. The findings of this study indicate that the natural disaster insurance policy may adopt the concept of tax allowance on donation and zakat as stipulated in Law No. 36 of 2008 on Income Tax. This incentive provides a tax facility in the form of tax allowance on income for calculating Income Tax. The policy is expected to attract the community to participate in natural disaster insurance amid the general lack of participation in insurance in Indonesia. On the other hand, the government obtains a source of revenue to finance disaster mitigation without disrupting the economy of the country.https://journal.unnes.ac.id/nju/index.php/jpi/article/view/21363natural disaster insurancedisaster mitigationtax allowanceincome taxpolicy innovation |
spellingShingle | Dini Dubelmar Made Astrin Dwi Kartini Sabila Mareli Murwendah Murwendah Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation Politik Indonesia: Indonesian Political Science Review natural disaster insurance disaster mitigation tax allowance income tax policy innovation |
title | Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation |
title_full | Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation |
title_fullStr | Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation |
title_full_unstemmed | Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation |
title_short | Disaster Response in Indonesia: Initiating Income Tax Policy Pro Disaster Mitigation |
title_sort | disaster response in indonesia initiating income tax policy pro disaster mitigation |
topic | natural disaster insurance disaster mitigation tax allowance income tax policy innovation |
url | https://journal.unnes.ac.id/nju/index.php/jpi/article/view/21363 |
work_keys_str_mv | AT dinidubelmar disasterresponseinindonesiainitiatingincometaxpolicyprodisastermitigation AT madeastrindwikartini disasterresponseinindonesiainitiatingincometaxpolicyprodisastermitigation AT sabilamareli disasterresponseinindonesiainitiatingincometaxpolicyprodisastermitigation AT murwendahmurwendah disasterresponseinindonesiainitiatingincometaxpolicyprodisastermitigation |