Deputy Minister of Finance Reveals 3 Priority Tax Reform Agendas

JAKARTA, DDTCNews - Tax reform has been cited as one of the key policies of the Ministry of Finance (MoF) in Indonesia's fiscal strategy.

Deputy Minister of Finance, Juda Agung, said tax reform is necessary given that economic growth is targeted at 6% and the budget deficit at 2.4% of GDP. Strong revenue is required to achieve both.

"Achieving both objectives will require stronger revenue mobilisation, better expenditure quality and prudent financing. Tax reform is therefore at the core of our fiscal strategy," he said at the International Tax Conference 2026, Wednesday (16/9/2026).

However, he continued, tax reform cannot be pursued on ambition alone. Tax reform must be supported by a commitment to evidence-based policymaking.

"Evidence-based policymaking means diagnosing problems accurately, understanding what works for whom and at what cost and continually learning from those policies. This not only strengthens the effectiveness of tax reform but also enhances institutional credibility," said Juda.

According to Juda, there are 3 priority agendas in tax reform. First, modernising administration to facilitate taxpayers in complying with applicable tax provisions.

He noted that tax administration technology needs to facilitate taxpayers to register, file income tax returns and pay tax due. Indonesia has pursued this through the coretax system.

Second, broadening the tax base and strengthening compliance in an equitable manner. Juda considered that the use of third-party data and risk-based supervision can assist the Directorate General of Taxes in identifying non-compliance and prioritising audits.

Third, establishing a fair, predictable tax system that is aligned with global economic developments.

"This encompasses stronger international cooperation, improved dispute resolution and policies that accommodate the conditions of various taxpayers," he said. (rig)