DGT Develops AI with Taxpayer Data Confidentiality as Priority

JAKARTA, DDTCNews - The Directorate General of Taxes (DGT) has affirmed that the use of artificial intelligence (AI) in tax business processes will continue to safeguard the confidentiality of taxpayer data. This topic is among the subjects reviewed by national media today, Wednesday (14/9/2026).

Director General of Taxes, Bimo Wijayanto. stated that the DGT does not simply use AI tools commonly available to the public. According to him, the AI used by the DGT is a dedicated system developed in conjunction with partner jurisdictions.

"We will not use open-source tools to run our AI system. We implement the AI system using our internal capacity as well as through cooperation with other tax authorities that already have sophisticated AI systems, such as China," he said.

Bimo acknowledged that AI enables tax authorities to manage data more quickly and accurately as well as to expedite the delivery of services to taxpayers. However, the use of AI must continue to take into account the confidentiality of taxpayer data.

"The issue of taxpayer data confidentiality is our foremost priority. I will assure taxpayers that we are serious about protecting the confidentiality of their data," he said.

Further, Bimo considers AI to be one of the technologies that tax authorities need to harness in the current era. In his view, the presence of AI enables tax authorities to manage tax compliance risk more efficiently.

"AI enables us to process large volumes of data rapidly and to handle compliance accurately. This allows us to allocate human resources to more complex issues, whilst simultaneously expediting the delivery of services to taxpayers," said Bimo.

However, the use of AI also needs to be accompanied by improvements in the relationship between taxpayers and the tax authority. To bring about such improvements, Bimo continued, Indonesia has launched a cooperative compliance programme.

"Rather than relying solely on audits and enforcement, we are building partnerships based on transparency, timely communication, and mutual trust," he said.

In addition to the above topic, there is a review of the draft government regulation on final income tax for book authors' royalties. There is also discussion concerning the tax ratio, the reduction of L&B Tax-P5L penalties, and other matters.

Below is the full review of tax articles.

Two AI Systems Already in Use by the DGT

The DGT's Director of Business Process Transformation, Mukhammad Faisal Artjan, stated that there are 2 AI systems that the DGT has already deployed in running its tax administration business processes. One of them is a tax assistant named the Advance Responsive Virtual Tax Assistant (Arvita).

Arvita has been used by the DGT since 2024 and can be utilised by tax officers to search for data and information relating to tax potential in specific sectors, through to basic tax regulations.

In addition to Arvita, Faisal continued, the DGT has developed an AI model that assists the preliminary audit process. The AI model in question is the Tax Crime Handling System (TCHS). (DDTCNews)

Final Income Tax on Book Authors' Royalties to Be Enacted Soon

The Government is targeting the enactment of the draft government regulation on the final income tax incentive for book authors' royalties by November 2026.

Minister of Creative Economy, Teuku Riefky Harsya, stated that the draft government regulation is currently in the harmonisation stage. It is planned that the final income tax rate on authors' royalty income will be reduced to 1.5% from the effective rate currently in force.

"[This draft government regulation] has undergone the meaningful participation stage [public consultation] and will next enter the harmonisation process," he said. (DDTCNews)

DGCE Revises Audit Rules for Excisable Goods Operators

The Directorate General of Customs and Excise (DGCE) has updated the compliance audit procedures for excisable goods (barang kena cukai/BKC in Indonesian) operators. This update was carried out through the Director General of Customs and Excise Regulation No. PER-12/BC/2026.

The regulation, which takes effect from 1 January 2027, repeals and replaces PER-10/BC/2023. The replacement of the regulation was undertaken to enhance compliance amongst excisable goods operators whilst standardising the governance of excise document analysis and compliance inspections.

"Director General of Customs and Excise Regulation Number PER-10/BC/2023 concerning Procedures for Inspections of the Compliance of Excisable Goods Operators needs to be replaced," reads the consideration of PER-12/BC/2026. (DDTCNews)

DGT Prepares AI System to Monitor HNWIs

The DGT is developing an AI system to monitor changes in the assets of high net worth individual taxpayers. Through this system, the tax authority can map assets, company ownership and inter-entity relationships connected to such taxpayers.

Deputy Minister of Finance, Nurkholisoh Ibnu Aman, stated that the development of this system is being carried out through a dashboard that integrates information concerning individuals, families, companies and assets held.

"We are developing a dashboard that displays the individual, their family, their companies, the assets held and the relationships between all those entities," he said. (Kontan)

House Commission XI Highlights Stagnant Tax Ratio Despite GDP Growth

Commission XI Chairperson, Mukhamad Misbakhun, is of the view that the issue of low tax revenue is a shared challenge that must be resolved by openly identifying its root causes.

According to Misbakhun, low tax revenue is not solely an issue for the DGT, but rather an issue that must be resolved collectively through an evaluation of the sub-optimal state of tax revenue.

"This is not just the DGT's issue. This is our collective problem. We must speak with open hearts; where exactly does the problem lie?" said Misbakhun. (DDTCNews)

DGT: L&B Tax-P5L Penalty Reduction as Stimulus, Streamlined Terms

The DGT has stated that the reduction or nullification of administrative penalties or fines under L&B Tax-P5L, as regulated under Article 27A of Minister of Finance Regulation 71/2026, forms part of an economic stimulus.

DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti, stated that the stimulus is delivered through the simplification of the process for submitting an application for the reduction or nullification of tax administrative penalties. This is expected to alleviate the financial burden on taxpayers in the plantation, forestry, oil and gas mining, geothermal, mineral and coal sectors and other sectors.

"Article 27A of MoF Reg. 71/2026 serves as an economic stimulus in the context of accelerating economic growth and reducing the financial burden on taxpayers through broader simplification of the application process for the reduction or nullification of administrative penalties," she said. (DDTCNews)