To Boost Revenues, Purbaya Vows to Plug Tax Leaks and Improve HR
JAKARTA, DDTCNews - Minister of Finance, Purbaya Yudhi Sadewa, has committed to improving the effectiveness of tax collection by closing revenue leakage gaps.
According to Purbaya, effective tax collection is key to achieving a higher tax revenue target next year. The tax revenue target for 2027 is set at IDR2,591.4 trillion, up 12.14% from this year's outlook of IDR2,310.8 trillion.
"The key now is improving the efficiency of tax and customs collection. We must avoid significant leakages going forward," he said, as quoted on Monday (31/8/2026).
Purbaya stated that one of the measures to be taken to close tax revenue leakage gaps is to intensify audits of corporate taxpayers operating in the steel industry sector.
He revealed that many steel companies, particularly those originating from China, are suspected of violating VAT, income tax and import-export provisions. As such, the state is estimated to be suffering revenue leakages of up to IDR5 trillion.
"From steel companies alone that are not operating correctly, not in accordance with existing provisions; namely those from China, [revenue leakages] could exceed IDR5 trillion, from [transactions in] building materials and the way they operate," he said.
If such malpractice is widespread in the field, Purbaya continued, there are concerns that other corporate taxpayers, including domestic companies, may also become involved. For this reason, companies suspected of evading tax need to be audited and dealt with firmly without delay.
In addition to preventing revenue leakages, Purbaya believes that supervision and enforcement are also crucial to establish a level playing field. With these measures, he is confident that state revenues next year will be more optimal.
"If I don't sort out the Chinese [companies], [local companies] will do the same. To be competitive, I really must sort that out," added the state treasurer.
Purbaya added that the government will not raise tax rates merely to achieve the 2027 revenue target. He stated that the 2 strategic steps to be promoted next year are broadening the tax base and improving compliance.
Furthermore, he also committed to improving the performance of employees of the Directorate General of Taxes (DGT) and the Directorate General of Customs and Excise (DGCE), thereby, they become more professional and competent. In his view, improvements in service will also encourage taxpayer compliance and ultimately boost state revenues.
"Broadening the tax base to safeguard fiscal [stability], and the funds will be used without jeopardising budget funds, but that does not imply raising rates. Those who have habitually evade their taxes [committing malpractice] will be dealt with more cleanly going forward," said Purbaya. (rig)
