Don‘t Ignore Distress Warrants, DGT Explains the Consequences

JAKARTA, DDTCNews - Taxpayers are urged not to ignore distress warrants issued by the Directorate General of Taxes (DGT) in the tax collection process.

DGT Senior Tax Instructor, Gede Suarnaya, explained that a distress warrant is one of the stages in the active collection process after a taxpayer has failed to settle their tax liability pursuant to the applicable provisions.
He noted that a distress warrant is not merely a warning letter, as it may be followed by confiscation and even auction of assets if the tax liability remains unpaid.

"The distress warrant holds a very important position. It is issued by a tax bailiff and is not merely an ordinary warning letter. This document carries executorial legal force, meaning it is equivalent to a court decision with permanent legal force," he said on the DGT's Cermati podcast, as quoted on Wednesday (23/9/2026).

Gede said the distress warrant carries consequences that taxpayers need to heed. Once the warrant has been served and the tax liability has not been settled, the DGT may proceed with the collection process through to confiscation.

"What does that imply? The state can proceed directly with confiscation without the need for a lawsuit. This is important to convey so that taxpayers take it genuinely seriously," he said.

Tax collection using distress warrants is implemented pursuant to Law 19/1997, as amended by Law 19/2000, on Tax Collection Using Distress Warrants and the Minister of Finance Regulation (MoF Reg.) 61/2023.

If the tax bearer does not promptly settle the tax liability within 2 times 24 hours of the distress warrant being served, the DGT may carry out confiscation of assets belonging to the tax bearer. Confiscation is carried out to secure settlement of the tax liability and collection costs.

If the tax liability remains unsettled, the confiscated goods may be sold through an auction mechanism pursuant to the applicable provisions.

Gede reminded taxpayers not to wait until the collection process reaches the confiscation or auction stage. He noted that taxpayers can discharge their obligations at an earlier stage so that the collection process does not continue.

A distress warrant is issued after the preceding stages have been completed. In general, the basis for tax collection carries a settlement period of one month from the date of issuance.

If the tax liability has not been settled by the due date, the DGT may issue a reprimand letter after seven days have elapsed from the due date. If the taxpayer has still not settled the tax liability after the reprimand letter has been issued, the distress warrant may be served by the tax bailiff after 21 days have elapsed.

"So there are five stages in the collection process. After a debt falls due, there will be a reprimand letter, a distress warrant, confiscation and then finally an auction," said Gede.

Gede emphasised that the primary purpose of tax collection is not to carry out confiscation or an auction, but rather to encourage taxpayers to settle their tax obligations. He therefore urged taxpayers not to ignore documents received from the DGT.

If a taxpayer experiences financial difficulty in settling their tax liability, they may apply for payment in instalments or a payment deferral pursuant to the applicable provisions. (dik)