More so than most other countries, Indonesia is notorious for making people feel at ease by getting rid of rules or laws that most people don’t like, only to slip some even worse ones in there at the same time.
Recently this happened when they announced they would be getting rid of import taxes on alcohol, which most people thought would lower the prices of alcohol. Instead some new regulations were introduced which made the prices of alcohol skyrocket even higher.
Now we are faced with a similar dilemma, as Fiscal tax will be no more as of 2011.
Unfortunately, things in paradise aren’t quite perfect. Indonesia is among the most corrupt countries in the world and things don’t seem to be getting drastically better. Government officials on all levels are largely open to bribes and sometimes even require them before they will do any sort of work.
While the average expat will probably never have anything to do with some of these higher level guys, you will see traffic cops and police on a daily basis. Foreigners are often pulled over, often with no official reason for the stop except to make sure things are all in order, of which things are usually not, at least to the police officer’s satisfaction.