Research Article
Indonesia Debt to Equity Ratio (DER) Policy of Listed Companies on International Taxation Best Practices
@INPROCEEDINGS{10.4108/eai.30-10-2019.2299415, author={Maria R.U.D. Tambunan and Ginda Togatorop and Sabila Mareli}, title={Indonesia Debt to Equity Ratio (DER) Policy of Listed Companies on International Taxation Best Practices}, proceedings={Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia}, publisher={EAI}, proceedings_a={ICAS-PGS}, year={2020}, month={8}, keywords={debt-to-equity ratio arm’s length listed companies interest expenses related party}, doi={10.4108/eai.30-10-2019.2299415} }- Maria R.U.D. Tambunan
Ginda Togatorop
Sabila Mareli
Year: 2020
Indonesia Debt to Equity Ratio (DER) Policy of Listed Companies on International Taxation Best Practices
ICAS-PGS
EAI
DOI: 10.4108/eai.30-10-2019.2299415
Abstract
The aims of this article are to examine whether Debt-to-Equity Ratio (DER) Policy in Indonesia has been fair on international tax best practices, to assess the practices of DER for listed companies in Indonesia Stock Exchange (ISE) and to identify the types of industries need to further review of their financing schemes that potentially would risk on their completion of tax obligation. This research occupies qualitative method. The data was gathered through literature review and documentation study. The research shows that the DER of listed companies in ISE for most of sectors are still below the Indonesia DER threshold, with mining industry close to the threshold. Indonesia DER is still moderate compare to other countries which adopt the similar approach. For further study, it needs to assess the non-listed companies whether the Indonesia threshold is still appropriate
