Some people are concerned with the promulgation of a new regulation for the banking sector that allows the Government to force local banks into disclosing their clients’ banking data. The Indonesian government has basically scrapped the existence of banking data secrecy by introducing said regulation. The Nation’s tax authorities can now access information on accounts held at financial institutions, including bank accounts. The new regulation should contribute to a more transparent financial system and boost the Government’s (much-needed) tax revenue. But that being said, the regulation is still in the form of a Government Regulation in Lieu of Law (Perppu), and so it is still subject to the approval of the Indonesian parliament.
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