Page 2 - Working Paper (Measuring BEPS and Its Countermeasures in Indonesia: A Preliminary Research Guide)
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B. Bawono Kristiaji dan Denny Vissaro 1      Measuring BEPS and
                                                                          its Countermeasures
                                                                                        in Indonesia:
                       BEPS practices have gain rising attention
                   over the last decade, particularly in Indonesia.                    A Preliminary
                   However, knowledge about  its magnitude is                       Research Guide
                   still  relatively unknown. Many researches
                   with various methods have been developed to
                   enlighten the dimensions of BEPS. This paper
                   examines the possibilities and  limitation                         DAFTAR ISI
                   in measuring  BEPS  in Indonesia, assess
                   currently available data and suggest what can
                                                                          1.  Introduction.....             3
                   be done to optimize the potential in the future.
                   Furthermore, this paper also proposes set of
                   researches  plan  to ensure the knowledge              2.  The Concept of BEPS.....      4
                   development of BEPS.
                                                                          3.  The Need to Measure and       6
                       It is important to note that measuring the           Monitor.....
                   magnitude of BEPS in one particular country
                   is  difficult  from  substantive  and  technical       4.  Assessing Data and Research   7
                   point of  view and also  data limitation.                Tool Options.....
                   Substantively,  BEPS  practices are seemingly
                   similar  with  other  financial  activities,  and      5.  Currently-Feasible Options   15
                   not all factors influencing the magnitude can            for Measuring BEPS and
                   be  easily incorporated into the model. For
                                                                            Its Countermeasures in
                   instance, incorporating  hybrid mismatch                 Indonesia.....
                   arrangements  that  are used for BEPS  into
                   an estimation model  would bring particular
                                                                          6.  Conclusion.....              20
                   complexity. From technical side, it is difficult
                   to build reliable estimation model using time-
                   series data. Then, regarding data inadequacy,
                   this paper points out that restricted access for
                                                                       micro-approach researches are ideal to
                   research purpose is one of the constraints for
                                                                       narrow the knowledge of BEPS behavior,
                   BEPS measurement advancement.
                                                                       particularly in identifying specific BEPS
                                                                       scheme  or  MNEs in certain sector.
                       This    paper    provides     introductory
                                                                       Researches  with  this methodology
                   guide or basic principle that  could  be  of
                                                                       are also favorable  to measure the
                   consideration  in setting  the research plan.
                                                                       effectiveness of BEPS countermeasures,
                   Preliminarily, macro-approach  research  is
                                                                       since  each of them usually have their
                   useful  to measure the magnitude  of BEPS
                                                                       own specific purpose.
                   in  overall.  Currently  available  data  that  can
                   be  used  include  CIT  revenue  as  the  basis  to
                   measure the  government loss due to BEPS
                   practices. Other variables  can  be  utilized
                   to help distinguishing BEPS  practices from
                   usual  investment  flow.  Subsequently,  set  of

                   1. B, Bawono Kristiaji is the Partner, Research & Training Services at DDTC,
                   Denny Vissaro is the Fiscal Economist at DDTC

                   The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
                   entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate
                   as of the date received or that it will continue to be accurate in the future. The author’s views expressed in this Working Paper do
                   not necessarily reflect of the views of DDTC. Working Papers describe research in progress by the authors and are published to elicit
                   comments and to further debate.
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