Supreme Court Advances Tax Court Unification Plan

JAKARTA, DDTCNews - The Supreme Court (Mahkamah Agung/MA in Indonesian) and the government have begun preparing for the integration of the tax court pursuant to the Constitutional Court (Mahkamah Konstitusi/MK in Indonesian) Decision Number 26/PUU-XXI/2023.

The Director General of the Military and State Administrative Courts Body (Badan Peradilan Militer dan Tata Usaha Negara/Badilmiltun in Indonesian) of the Supreme Court, Yuwono Agung Nugroho, stated that the integration under a unified judiciary would be carried out in stages to ensure that dispute resolution at the Tax Court is not disrupted.

"We must ensure that the transition process proceeds smoothly. On one hand, the tax dispute resolution services must not be disrupted, as they constitute an important part of the state's financial system. On the other hand, institutional changes must continue to run within the applicable legal framework," he remarked on Thursday (2/7/2026).

In the initial phase, management of the Tax Court is transferred to the Supreme Court without setting aside the provisions under the Tax Court Law that remain in force. In the subsequent phase, the integration under a unified judiciary will need to be supported by a revision of the Tax Court Law to establish a comprehensive institutional design.

At present, Yuwono continued, the government is conducting cross-ministerial discussions on a presidential regulation (Pres. Reg.) concerning the integration of the Tax Court under a unified judiciary.

However, a number of strategic issues still need to be resolved, namely employment status, career pathways and the conversion of the status of tax judges with diverse backgrounds.

Meanwhile, the Head of the State Administrative Chamber of the Supreme Court, Yulius, added that the integration of the tax court into the Supreme Court should be viewed as part of strengthening the rule of law and the independence of judicial power.

He emphasised that taxation is the primary instrument for state financing. Consequently, tax disputes cannot be regarded merely as technical tax matters, but as part of the legal relationship between the state and its citizens.

Yulius also called for the discourse on the integration of the tax court into the Supreme Court not to focus solely on institutional nomenclature.

"What we must first unify is our perspective on the function of the judiciary. Integration is not merely about moving an organisation, but about strengthening the philosophy of judicial power," he said. (rig)