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Indonesia and the Netherlands have been closely linked for centuries. And still, there a numerous political and economic ties that have an impact on Indonesian society and economy. According to the IMF, for example, the Netherlands is the second largest investor in Indonesia. Furthermore, Indonesia - and other Asian countries - suffer unnecessary revenue losses from Dutch tax treaties. Indonesia’s loss in withholding taxes on interest and dividends alone was more than 50 million EUR in 2011. The total revenue lost through Dutch mailbox companies would be even bigger and Dutch tax treaties are a source of tax base erosion in Indonesia. SOMO wants to re-examine these links between the Netherlands and Indonesia, and tackle the problems flowing from them. In order to do this, we linked with Indonesian partners Indonesia for Global Justice, Prakarsa, Walhi, JATAM, Sawit Watch, KRuHA, and IHCS to do joint research, exchange knowledge and push for change in Indonesia and the Netherlands. Our research will maintain a comprehensive focus as well as recognizing a joint political sphere of influence. We will look at the impact of multinational corporations in Indonesia, in the context of the investment framework and with a focus on relations to the Netherlands.

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