Academic journal article European Research Studies

Implications of Tax Receivables and Retribution for the Economic Growth of Indonesia

Academic journal article European Research Studies

Implications of Tax Receivables and Retribution for the Economic Growth of Indonesia

Article excerpt

1. Introduction

Indonesia as the largest archipelago country in the world must master the transportation infrastructure, if it wants to maintain the unity of the republic of Indonesian country (NKRI). Transport infrastructure in Indonesia consists of: (1) land transport infrastructure which includes (a) road, (b) railway infrastructure, (c) river, lake and ferry transport infrastructure, (2) marine transport infrastructure, (3)) Infrastructure air transport, and (4) space transportation infrastructure (pro memory) In a competitive business environment and dynamic demands of increasing the competitiveness of investment into something of a major hope for the investors, the state and society. Physical infrastructure such as transportation and telecommunications infrastructure as a social capital of society, is an infrastructure in economic growth, a prerequisite of economic and social activity, and a factor of competitiveness in global competition.

The development of toll road transport infrastructure spur economic growth, namely (1) Increasing the fulfillment of transportation infrastructure needs, in line with the economic growth that began to improve (range 5-6% / year), (2) Increasing the productivity considering toll roads as the access of infrastructure to accelerate the production resource mobilization from one place to another that spur economic growth, (3) Encouraging the emergence of investment in other development sectors such as industrial development that accelerates the production of raw materials into finished goods and distribution, and services directly to toll road users, such as the establishment of gas stations and restaurants.

Several previous studies that examined the relationship between economic growth and human development include: Directorate of Institutional Development Infrastructure Public, Bapenas (2005). To guarantee infrastructure support for economic growth, the government is expected to seek a resolution of a substantial financing gap of approximately Rp 266.7 trillion (US $ 31.4 billion using the Rp 8,500 per US $) rate. In order to cover the gap between the estimated investment needs of infrastructure as well as the estimates of the government ability to finances infrastructure investments, among others, through the reallocation of government budgets that focus more on infrastructure development; Encouraging private parties to play an active role in infrastructure development and management or establishing a financing institution that can fund infrastructure projects.

David Aschauer (2000) argues that the availability of infrastructure services is an important production factor. The study also found the fact that the decline in productivity, can be caused by worsening availability of infrastructure services. This study was initiated by World Bank (2003) which stated that economic growth of one percent was closely related to the growth of the availability of infrastructure services by one percent too. Novelty stated in this study that economic growth influenced taxes, levies and employment and investment toll roads that have never been studied before.

2. Theory and Hypothesis

Measuring the economic growth of a country, economists agree on the use of data on gross domestic product (GDP). Basically economic growth can be seen from two sides, namely the demand side (Aggregate Demand) and supply side (Aggregate Supply). On the demand side of economic growth will be influenced by the large demand for economic households on goods and services (output), this developed by Keynes which consists of household consumption (C), gross investment from the private sector and government (I), Government expenditure (G), and net exports (XM). Groups (Nayia Mahajan and Satish Verma, 2014; Sambrakos and Ramfou, 2014; Pociovalisteanu and Thalassinos, 2008; Vovchanko et al., 2017).

Encouraging the acceleration of infrastructure development, there needs to be other supporting policies in involving the private sector in the provision of Infrastructure, among others: (1) Encourage the establishment of Infrastructure Developement Fund in order to mobilize domestic funds to contribute financially viable infrastructure projects financially. …

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