Supreme Court: Tax Disputes at IIFC Should Stay with Tax Court
JAKARTA, DDTCNews - Tax disputes at the Indonesia International Financial Centre (IIFC) are deemed to need to remain handled by the Tax Court, rather than by a special court at the IIFC. This topic is one of the reviews in the national media today, Friday (10/7/2026).
According to the Head of the Oversight Chamber of the Supreme Court (Mahkamah Agung/MA in Indonesian), Syamsul Ma'arif, tax disputes at the IIFC must continue to be resolved through the Tax Court to maintain legal unity.
"If such authority is to be delegated to the IIFC, it must be reviewed to determine whether it is appropriate for the IIFC court to remain under the general judiciary," he said at a joint meeting with Commission XI of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian).
Furthermore, if the authority to handle tax disputes at the IIFC is genuinely to be delegated to the IIFC special court, it must be ensured that judges at the said court possess tax competency.
Judges at the IIFC court need to have competency in the field of taxation in order to maintain legal certainty and to prevent the emergence of disparities in tax dispute rulings between the IIFC court and the Tax Court.
Moreover, should the authority to handle tax disputes at the IIFC be delegated to the IIFC's specialised court, it must be ensured that the judges at that court possess competence in taxation.
Judges at the IIFC court need to have competence in the field of taxation to maintain legal certainty and to prevent divergences in tax dispute decisions between the IIFC court and the tax court.
"The issue is legal certainty, so that there is no divergence between decisions of the IIFC court and the tax court, which would ultimately give rise to legal uncertainty," said Syamsul.
Further, Syamsul noted that the Supreme Court is currently also initiating the establishment of a specialised tax chamber. As such, the plan to grant the IIFC court authority to handle tax disputes is considered in need of further review.
On another note, the IIFC Draft Law also contains a clause underpinning the establishment of a special court at the IIFC. Under the current draft of the said draft law, the IIFC court would have authority to examine, adjudicate and decide on 5 types of disputes.
First, disputes related to business activities at the IIFC. Second, disputes arising from contracts, where part or all of which are or will be implemented at the IIFC. Third, disputes arising from the granting of tax facilities.
Fourth, disputes from any event occurring or transaction at the IIFC implemented partly or wholly within the IIFC. Fifth, any legal question or issue concerning all activities related to the IIFC, the jurisdiction, competency and authority of the IIFC court, including the interpretation of IIFC board regulations.
In addition to the above topic, there is a review concerning the Directorate General of Taxes (DGT) sending emails to taxpayers indicated to have made errors in completing their annual individual income tax return. There is also a discussion regarding the special power of attorney for taxpayers, financial centre incentives in Indonesia and other matters.
Below is a full review of the tax articles.
Special Court at IIFC to Be Established via Separate Law
The Supreme Court is urging the House of Representatives to prepare a separate law concerning the IIFC special court. Further, every court currently already has its own legislation. As such, the special court at the IIFC also needs to be established on the basis of separate law.
The Head of the Supreme Court's Oversight Chamber, Syamsul Ma'arif, stated that the establishment of a special court at the IIFC needs to be underpinned by separate legislation outside the IIFC Draft Law, so as to be consistent with the national legal system.
Further, he also requested the House to narrow the scope of disputes that may be heard and decided by the IIFC court. Under the current Draft Law, the IIFC court is viewed as having excessively broad authority. (DDTCNews)
Taxpayers Indicated to Have Incorrectly Filed Annual Tax Return — DJP to Send Emails
The Directorate General of Taxes (DGT) is sending official emails to individual taxpayers indicated to have made errors in completing the 2025 annual individual income tax return.
The DGT explained that the purpose of sending these emails is to assist taxpayers in fulfilling their tax obligations pursuant to the applicable provisions. Through the said email, the DGT is urging taxpayers to promptly amend their annual tax return.
"A tax return that is completed incorrectly, incompletely and/or unclearly may result in penalties pursuant to the applicable provisions," the DGT wrote in its announcement. (DDTCNews/Kontan)
MoF Targets IDR500 Trillion in Capital from Establishment of IIFC
The Ministry of Finance (MoF) believes that the establishment of the IIFC will attract stated capital worth IDR300 trillion to IDR500 trillion.
The Director General of Financial Sector Stability and Development, Herman Saheruddin, stated that the IIFC will offer competitive incentives and regulations as well as unique characteristics not found in the financial centres of other countries.
"The point is that we can compete with other financial centres. It's just that Indonesia is distinctive. It's not purely a financial centre. We have enormous resources," he claimed. (DDTCNews)
MoF Reg. 44/2026 Governs Taxpayer Special Power of Attorney
Minister of Finance Regulation (MoF Reg.) 44/2026 also governs matters relating to the special power of attorney that must be held by a taxpayer's attorney.
Pursuant to the provisions under Article 32 paragraph (3) of the General Provisions and Tax Procedures Law (GPTP Law), a taxpayer may appoint an attorney via a special power of attorney to exercise rights and fulfil their tax obligations. MoF Reg. 44/2026 sets out the detailed provisions concerning the said special power of attorney.
“An attorney, to exercise tax rights and/or fulfil tax obligations referred to in Article 2 paragraph (1), must have a special power of attorney from the taxpayer,” reads Article 7 paragraph (1) of MoF Reg. 44/2026. (DDTCNews)
IIFC Incentives Risk Giving Rise to Capital Round-Tripping Practices
The granting of incentives at the financial centre currently being developed by the government is considered to risk becoming a double-edged sword. If not anticipated early, a 0% tax rate at the Indonesia International Financial Centre could become the seed of capital round-tripping practices.
In ongoing discussions, a significant risk has emerged should the government be overly generous in providing fiscal incentives. That risk is capital round-tripping, i.e., a scheme involving the transfer of domestic investment abroad only to be reintroduced into Indonesia as foreign direct investment (FDI).
"We will prevent it. There are regulations in place; we can easily regulate it later," said Minister of Finance, Purbaya Yudhi Sadewa. (Bisnis Indonesia)
ADB Forecasts Indonesia's Economy to Grow 5.2% This Year
The Asian Development Bank (ADB) estimates that the Indonesian economy will grow by 5.2% both this year and next year.
The national economic projection has not been revised downwards, despite several South-East Asian countries having their projections revised down by the ADB through the July 2026 edition of the Asian Development Outlook (ADO).
"Indonesia’s outlook remains stable, with growth forecasts unchanged at 5.2% for both 2026 and 2027," the ADB wrote in its report. (DDTCNews)
