Coretax Data to Bolster DGT Supervision and Law Enforcement
JAKARTA, DDTCNews - The Directorate General of Taxes (DGT) will leverage increasingly comprehensive tax data within the coretax system to strengthen supervision, audit and law enforcement activities. This topic is among the subjects covered by national media today, Thursday (16/7/2026).
Director General of Taxes, Bimo Wijayanto, said that tax data gathered through coretax is now more solid, enabling the authority to enhance various oversight activities.
"We will increase activities in terms of supervision, audits and law enforcement, for which the materials from H1/2026 have begun to be more solid," he said.
Bimo noted that strengthening supervision, audits and law enforcement is one of the DGT's strategies to address the tax revenue shortfall, which is estimated to reach IDR46.9 trillion this year. The shortfall arises because tax revenue this year is projected to reach only IDR2,310.8 trillion, or 98% of the target of IDR2,357.7 trillion.
Notwithstanding that outlook, the government is still striving for tax revenue growth of 23%, so that the tax revenue target in the 2026 State Budget (anggaran penerimaan dan belanja negara/APBN in Indonesian) can be met.
In the first half of 2026, the government recorded tax revenue growth of 24.6%. Tax revenue realisation during that period reached IDR1,035.7 trillion, or 43.9% of the target.
In addition to strengthening supervision of taxpayer compliance, the DGT will also intensify extensification activities to broaden the tax basis. Bimo said extensification would not only target new taxpayers, but also reactivate taxpayers that have been inactive or dormant.
"Extensification is not only a purely new basis, but also the former basis that is dormant. With the data available, we are nudging those who are inactive back into our tax system," he said.
Under tax provisions, extensification is an activity to broaden the tax basis, including through supervision of parties that have fulfilled the subjective and objective requirements as taxpayers but have not yet fulfilled their tax obligations pursuant to the applicable provisions.
In addition to that topic, there is coverage on the exploration of local tax potential. There is also a discussion regarding plans to grant tax incentives for up to 50 years for investors in the financial centre.
The following is a full review of the tax articles.
Hundreds of Thousands of Dormant Taxpayers Reactivated
Bimo noted that the use of data through coretax for extensification activities has begun to yield results. Throughout this year, the DGT has reactivated 143,449 taxpayers who previously held dormant status in 2025.
He noted that the reactivation of hundreds of thousands of taxpayers has generated additional tax revenue of IDR1.21 trillion. The DGT hopes that the optimisation of oversight, law enforcement, and extensification supported by coretax data can help close the potential tax revenue shortfall in 2026.
"Hopefully, the [tax revenue] shortfall of IDR46.9 trillion can be covered through extensification. This is one measure [that will be undertaken]," said Bimo. (DDTCNews)
DGFB Prepares Local Tax Potential Modules for Local Governments
The Directorate General of Fiscal Balance (DGFB) is preparing local tax potential exploration modules based on each type of tax to assist local governments in optimising their local own-source revenue. At present, the DGFB has only launched the module for exploring motor vehicle tax potential.
As stipulated in Article 102 of the HKPD Law, local governments are required to set local tax and user charges targets by taking into account at least 2 aspects, namely local macroeconomic policies and local tax and user charges potentials. Unfortunately, currently, most local governments still set local tax and user charges targets based solely on realisation trend data, rather than on macroeconomic policies and potentials.
"The inadequate exploration of local tax potential can be seen in the rising realisation of local tax revenue that has yet to align with economic growth in each respective region," said Director General of Fiscal Balance Acting Official, Nufransa Wira Sakti. (DDTCNews)
Local Tax Potential Measurement Must Consider Data Availability
The approach used to measure local tax potential must be determined by taking into account data availability.
Senior Manager of DDTC Fiscal Research & Advisory (FRA), Denny Vissaro, emphasised that measuring potential using a complex approach requires comprehensive data. Where data is limited, the measurement of local tax potential should be conducted using a simpler approach.
"Ultimately, it is better to have a simple method with complete data than to devise a complex method where the data actually has many gaps," he said. (DDTCNews)
Tax Exemption at IIFC Proposed for up to 50 Years
The government and the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) have agreed that the tax exemption at Indonesia's International Financial Centre (IIFC) will apply for 50 years.
Chairman of House Commission XI, Mukhamad Misbakhun, said the proposal for a 0% tax rate, which will be incorporated into the IIFC Law, originated from the government. Although the House had sought a longer tax exemption period, it ultimately agreed to the government's proposal.
"The government will grant a 0% tax rate for up to 50 years. It's okay, because we are observing developments over the next 50 years," said Misbakhun. (Bisnis Indonesia, Investor Daily)
Minister of MSMEs: Large Businesses Ineligible for Final Income Tax
Minister of Micro, Small and Medium Enterprises (MSMEs), Maman Abdurrahman, considers that the implementation of Gov. Reg. 20/2026 will render the use of the MSME final income tax facility at a rate of 0.5% more precisely targeted.
Through Gov. Reg. 20/2026, the government has reduced the forms of corporate taxpayers that may utilise the MSME final income tax, compared with those previously governed under Gov. Reg. 55/2022. Corporate taxpayers in the form of limited partnerships (commanditaire vennootschap/CV in Dutch), firms, limited liability companies (LLC or perseroan terbatas/PT in Indonesian) other than sole proprietorships as well as village-owned enterprises and jointly-owned village enterprises (badan usaha milik desa/badan usaha milik desa bersama/BUMDes/BUMDesma in Indonesian) are no longer eligible to use the MSME final income tax.
"How can those who are already at the top, already strong, wish to be treated the same as the small ones? That's not fair," he claimed. (DDTCNews) (dik)
