BPK Flags Suboptimal Tax Receivable Collection by DGT

JAKARTA, DDTCNews - The Audit Board of the Republic of Indonesia (Badan Pemeriksa Keuangan/BPK in Indonesian) has noted that the Directorate General of Taxes (DGT) has yet to collect tax receivables optimally.

Results of sample testing on 2025 tax receivable collection indicate that the DGT had not been implementing active collection measures according to the deadline applicable to each assessment.

Referring to the 2025 Audit Report on the Central Government Financial Statements (Laporan Hasil Pemeriksaan atas Laporan Keuangan Pemerintah Pusat/LHP LKPP in Indonesian), the Audit Board of the Republic of Indonesia noted 1,534 assessments worth IDR1.24 trillion whose statute of limitations has expired without active collection by the DGT.

"Based on further clarification, it is known that the execution of active collection was largely hampered by taxpayers that could not be located and the absence of taxpayer assets that could be confiscated to settle the tax liabilities," the Audit Board of the Republic of Indonesia wrote in the 2025 LHP LKPP, as cited on Thursday (16/7/2026).

Consequently, tax receivables could not be realised as state revenues prior to the expiry of the statute of limitations for collection.

Further, the Audit Board of the Republic of Indonesia noted 4,740 assessments classified as nloss with a combined value of IDR5.83 trillion not yet subject to active collection within the deadline applicable to each assessment.

Finally, the Audit Board of the Republic of Indonesia noted 3,379 assessments with a status other than loss, worth IDR2.85 trillion, for which a distress warrant or a confiscation order (surat perintah melaksanakan penyitaan/SPMP in Indonesian) had been issued in 2025, but had not yet been followed up on with the notification of the distress warrant or execution of the confiscation.

The distress warrants had not been notified because the taxpayers could not be located, whilst confiscation could not be executed due to the absence of taxpayer assets available for confiscation.

According to the Audit Board of the Republic of Indonesia, all of the above issues arose because the DGT had yet to optimally act upon the Audit Board of the Republic of Indonesia's findings concerning active collection efforts.

To address these issues, the Audit Board of the Republic of Indonesia is urging the DGT to implement tiered supervision of active collection activities in respect of tax receivables. (dik)