2027 Target: Purbaya Focuses on Closing Tax Revenue Gaps
JAKARTA, DDTCNews - Minister of Finance, Purbaya Yudhi Sadewa, has committed to improving the effectiveness of tax collection by closing revenue leakage gaps. This topic is among the subjects covered by national media today, Tuesday (1/9/2026).
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 claimed.
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 two strategic steps to be pursued next year are broadening the tax base and improving compliance.
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.
Further, 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.
In addition to the above topic, there is also coverage of business owners' complaints regarding tax refunds. Further, there is discussion on the entry into force of the relaxation of natural resource export proceeds (DHE SDA) rules, fiscal savings from the closure of state-owned enterprises (BUMN), the Asset Forfeiture Draft Law and other matters.
Below is a full review of the tax-related articles.
AMRO: Indonesia to Broaden Tax Base and Improve Expenditure Efficiency
The ASEAN+3 Macroeconomic Research Office (AMRO) has proposed two reform measures for Indonesia to ensure fiscal sustainability.
AMRO, through its official statement, noted that Indonesia still needs to mobilise revenues whilst improving budget expenditure efficiency. In terms of expenditures, Indonesia needs to reform subsidy policy and cut non-priority expenditures.
"Further improvements in tax administration and compliance, together with measures to broaden the tax base and introduce new sources of revenue, would strengthen domestic revenue mobilization," AMRO stated. (DDTCNews)
DHE SDA Relaxation Takes Effect on 1 September
The relaxation of the provisions on the domestic placement for export proceeds from natural resources (devisa hasil ekspor sumber daya alam/DHE SDA in Indonesian) under Article 18A of Government Regulation (Gov. Reg.) 21/2026 takes effect for export declarations (pemberitahuan pabean ekspor/PPE in Indonesian) from 1 September 2026.
Based on the mapping of PPE data, 64 companies have been recorded as satisfying the criteria of Article 18A of Gov. Reg. 21/2026, and are therefore entitled to utilise the relaxation of provisions on the domestic placement of the DHE SDA.
"The refined implementation of Article 18A of Gov. Reg. 21/2026 applies to PPE from 1 September 2026," wrote the Coordinating Ministry for Economic Affairs. (DDTCNews)
Business Owners Voice Complaints over Tax Refunds
After local business owners complained about the slow disbursement of tax refunds, foreign investors have now begun to express unease. Several foreign investors with capital placed in Indonesia have raised concerns over the tightening of tax refund disbursements.
The forms of obstruction to refund disbursement vary. These range from taxpayer complaints that go unaddressed to the placement of disbursed refund funds into a tax deposit account. This was also confirmed by the Employers' Association of Indonesia (Asosiasi Pengusaha Indonesia/APINDO in Indonesian), which received reports from investors regarding the difficulty experienced by the tax authority in disbursing tax refunds, including from a Japanese investor.
APINDO Tax Committee Chairperson, Siddhi Widyaprathama, stated that delays in tax refund disbursements are not felt only by foreign investors such as those from Japan, but are also a genuine challenge for domestic entreprenurs this year. (Bisnis Indonesia)
290 SOEs Shut Down, Government Saves IDR50 Trillion
President Prabowo Subianto has claimed to have closed 290 state-owned enterprises (SOEs) in under 2 years.
According to Prabowo, the SOEs closed by the government were those with poor performance and no profitability. From the closure of said SOEs, savings are claimed to have reached IDR50 trillion.
"In under 2 years of the government I lead, we have closed 290 SOEs that were unprofitable, that had poor performance, that were loss-making. We closed 290 SOEs. By [closing] 290 SOEs, we have saved IDR50 trillion," he said. (DDTCNews)
House: Asset Forfeiture Draft Law Is Not a Tool of Repression
Commission III of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) has asserted that the Asset Seizure Draft Law will not be misused as an instrument of power, despite the expansion of the categories of crimes covered under the asset seizure regime.
Habiburokhman, Chairperson of Commission III of the House, stated that asset seizure will be implemented based on the principle of equality before the law.
"We must certainly affirm that our constitution upholds the principle of equality before the law. Anyone who commits a legal violation must receive sanctions regardless of their official background," he said. (DDTCNews/Bisnis Indonesia)
DGT Regulates Mechanism for Replacing Tax Dispute Hearing Teams
The Directorate General of Taxes (DGT) has regulated the mechanism for replacing members or hearing teams handling appeal and objection disputes at the tax court. The regulation covers the issuance of a replacement assignment letter through to the handover of the hearing summary from the replaced member/team to the replacement member/team.
This provision is set out in Director General of Taxes Circular No. SE-6/PJ/2026. Referring to said circular letter, where a replacement of the hearing team or a change in the structure of the hearing team occurs, the replacement hearing team shall prepare an assignment letter for the replacement hearing team.
"The replacement hearing team assignment letter referred to in letter a shall be prepared using the sample format listed in appendix letter J, which constitutes an integral part of this director general circular letter," reads section E number (9) letter b number (4) of SE-6/PJ/2026. (DDTCNews)
