BERITA TERKINI
JAKARTA, DDTCNews - Account representatives (ARs) are now taking part in supervising taxpayers. However, in conducting such supervision, ARs must be equipped with an assignment letter or order. The Directorate General of Taxes (DGT) is set to issue the format of such orders for ARs through a forthcoming circular letter.
The implementation of supervisory functions and the monitoring of tax potential by ARs have emerged as one of the most discussed topics over the past week.
It is worth recalling that the mechanisms for taxpayer supervision by account representatives are stipulated under the Minister of Finance Regulation (MoF Reg.) 111/2025. Nevertheless, the regulation does not yet specify the format of the assignment letter required for ARs in performing supervisory duties.
The forthcoming circular letter to be issued by the director general of taxes will provide further provisions on matters not yet regulated under the minister of finance regulation. One such aspect concerns the assignment letter.
“Why is there no assignment letter format yet? The initial legal basis for ARs to commence their work is an assignment letter. MoF Reg. 111/2025, however, does not provide the format. It is, in fact, currently being prepared and will be included in a circular letter,” said DGT Senior Expert Tax Instructor Eddy Triono during a webinar organised by the Indonesian Tax Consultants Practitioners and Professionals Association (Perkumpulan Praktisi dan Profesi Konsultan Pajak Indonesia/P3KPI in Indonesian).
Referring to Art. 21 of MoF Reg. 111/2025, ARs must first be assigned by the head of the tax office (kantor pelayanan pajak/KPP in Indonesian) before undertaking supervision. The assignment is granted in the form of a supervision order.
“The assignment referred to in paragraph (1) is based on a supervision order,” reads Art. 21 paragraph (2) of MoF Reg. 111/2025.
Forms of supervision that may be implemented by ARs pursuant to an assignment include requesting explanations from a taxpayer through the issuance of a letter of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian) as well as conducting discussions with the taxpayer.
In addition, ARs may invite taxpayers to be present to the DGT office, conduct site visits, submit advisories, request TP Doc, collect economic data within their respective working areas, issue letters in the context of supervision and implement other supporting supervisory activities.
When an AR conducts a site visit to a taxpayer’s premises, holds discussions or carries out interviews, the AR is obliged to present the supervision order to the taxpayer.
The taxpayer subject to the visits, discussions or interviews is likewise entitled to request the AR to present the supervision order.
On another note, the circular letter currently serving as a reference in the implementation of supervision is Circular Letter Number SE-05/PJ/2022 concerning Supervision of Taxpayers’ Compliance.
This circular letter has yet to be repealed, notwithstanding that MoF Reg. 111/2025 has come into force as of 1 January 2026.
Apart from developments concerning the duties and functions of ARs in supervising taxpayers, several other noteworthy issues also merit attention. These include the DGT’s email blast initiative, the rise of the ‘Stop Paying Taxes’ movement, DGT’s strategies to boost revenues and the ongoing debate surrounding the proposed hike in Article 21 Income Tax.
The DGT plans to blast email to 14.01 million taxpayers, both individual and corporate taxpayers.
The DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti, stated that the email blast aims to disseminate information and encourage taxpayers to promptly prepare withholding slips (bukti potong pajak/bupot in Indonesian) and file their annual tax returns (surat pemberitahuan/SPT in English) for the 2025 tax year.
“The total target for the email blast is 14.01 million,” she noted.
Residents in Central Java have recently rallied behind a ‘stop paying taxes’ movement following a surge in motor vehicle tax (pajak kendaraan bermotor/PKB in Indonesian) collection after the implementation of the motor vehicle tax surtax.
In response to the phenomenon, Commission II member of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian), Muhammad Khozin, urged all provincial governments across Indonesia to take into account public conditions. He emphasized that motor vehicle tax surtax components and motor vehicle duty (bea balik nama kendaraan bermotor/BBNKB in Indonesian) should not be increased arbitrarily.
“The sociological aspects of local communities, particularly their economic capacity, must serve as a reference when formulating the amount of the surtax,” Khozin stated.
The government has various policy options to increase tax revenues other than raising the Art. 21 Income Tax rate.
Senior Partner of DDTC Fiscal Research & Advisory (FRA), B. Bawono Kristiaji, stated that the government has the discretion to evaluate various tax expenditure policies, which, in 2025, were estimated to have reached IDR530 trillion.
“Adjusting rates is not the real solution. Rather than pursuing tax reform that raises rates or introduces new taxes, we had better focus on what is before us and evaluate existing measures,” Bawono said during the Indonesia Kita programme, broadcast by Garuda TV.
The Indonesian government has formally endorsed a permanent moratorium on import duty on electronic transmissions.
Referring to the agreement on reciprocal trade concluded between Indonesia and the United States of America, Indonesia has committed not to impose import duty on electronic transmissions and to support a permanent moratorium under discussions at the World Trade Organization (WTO).
Still within the digital sector, Coordinating Minister for Economic Affairs, Airlangga Hartarto, affirmed that the government is also committed not to imposing a digital service tax (DST) or similar taxes deemed discriminatory against U.S. companies.
Director General of Taxes, Bimo Wijayanto, has voiced optimism that this year’s tax revenue target of IDR2.3577 quadrillion is attainable, insofar as domestic conditions remain stable.
According to Bimo, if tax revenue growth can be maintained at 30%, as recorded in January 2026, this year’s revenue target would be within reach. However, sustaining such momentum poses challenges, as tax remittances typically fluctuate over the course of the year.
“Ceteris paribus, if we can maintain 30% [tax revenue growth], we will certainly be able to [achieve the target]. The issue is that such performance tends to experience ups and downs,” he remarked. (sap)
