Indonesia and Singapore have agreed to intensify efforts to share tax-related information to squeeze loopholes on tax evasion in each other’s countries.

The move comes after Indonesia’ finance minister Bambang Brodjonegoro met his counterpart Tharman Shanmugaratnam in Singapore, Indonesia’s finance ministry was quoted as saying by Reuters.

Under the agreement, the sharing of tax information is expected to begin as early as 2017, or at the latest, by end of 2018.

In addition, both the countries have also agreed to revise local legislation to assist the exchange of information.

Indonesia and Singapore have already signed a tax information exchange agreement that includes data from financial institution and individuals in 1992.

"Exchanging information by request is not enough to reveal all assets hidden by citizens of both countries. Therefore, to accelerate information flows, Indonesia and Singapore have committed to exchange information automatically to complement the mechanism for information exchange by request," finance ministry added.

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Indonesia’s president Joko Widodo had pledged to raise Indonesia’s tax ratio to 16 % of gross domestic product from around 12%.