BPK Finds 2 DGT System Weaknesses Hindering Tax Optimisation
JAKARTA, DDTCNews - The Audit Board of the Republic of Indonesia (Badan Pemeriksa Keuangan/BPK in Indonesian) has identified weaknesses in the Directorate General of Taxes' Information System (Sistem Informasi Ditjen Pajak/SIDJP in Indonesian) that could potentially impede the optimisation of tax revenue. This topic features among the national media reviews today, Monday (19/10/2026).
The BPK stated that the weaknesses in the SIDJP relate primarily to 2 matters: the detection of tax payment non-compliance and the verification of the conformity of tax invoices with transactions and VAT reporting.
"Issues concerning weaknesses in the internal control system (sistem pengendalian intern/SPI in Indonesian) and non-compliance that are strategic and/or cross-cutting in nature, based on the audit findings of the LKKL and LKBUN for 2025, include: weaknesses in the Ministry of Finance's (MoF) SIDJP in supporting the optimisation of tax revenue," stated the BPK in its Summary of Audit Report (IHPS) Semester I/2026.
The BPK outlined 2 findings relating to the weaknesses of the SIDJP. First, the SIDJP is not yet adequate in mitigating tax payment non-compliance.
The system is also not yet capable of quickly and accurately detecting late payments, tax underpayments or tax payments that do not correspond to the relevant taxable period. This condition potentially results in administrative penalties that ought to be collected not being followed up through the issuance of a notice of tax collection (surat tagihan pajak/STP in Indonesian).
"There is potential revenue from administrative penalties that has not yet been followed up on through the issuance of a notice of tax collection (STP)," noted the BPK.
Second, the SIDJP is not yet fully capable of verifying and validating the conformity between tax invoices, the transactions and payments underlying the issuance of tax invoices and VAT reporting in the periodic VAT returns.
According to the BPK, this weakness potentially causes tax invoices that have not been filed by taxpayers to go undetected by the system.
"The SIDJP is not yet fully capable of verifying and validating the conformity of tax invoices with transactions, payments and VAT reporting in the periodic VAT returns, such that there are indications of tax invoices that have not been filed by taxpayers," explained the BPK.
In addition to the above topic, there is a review of the DGT's clarification on the issue of the rights of taxpayers' attorneys. There is also a discussion of the BPK's findings on tax holiday facilities, the number of entities registered as GloBE taxpayers and other matters.
The following is a full review of the tax-related articles.
BPK's SIDJP Recommendation on Tax Underpayment/Late Payment Detection
The BPK has recommended that the Minister of Finance evaluate the implementation of the SIDJP in detecting late payment and/or tax underpayments, including those arising from legal remedy decisions that have acquired permanent legal force (inkrah) resulting in tax underpayments.
The BPK has also urged the Minister of Finance to follow up on the results of that evaluation according to the BPK's recommendations from previous audit findings.
"As well as to follow up on the results of that evaluation as previously recommended in the BPK's earlier audit findings," stated the BPK in the IHPS Semester I/2026. (DDTCNews)
DGT: MoF Reg. 44/2026 Does Not Restrict Rights of Tax Attorneys
The DGT has confirmed that the regulation of taxpayers' attorneys in the Minister of Finance Regulation (MoF Reg.) 44/2026 is consistent with Constitutional Court (MK) Decision Number 63/PUU-XV/2017 as well as the most recent ruling, namely Constitutional Court Decision Number 341/PUU-XXIV/2026.
The Head of the Sub-Directorate of the Regulation of General Provisions and Tax Procedures and Tax Collection Using Distress Warrants at the DGT, Meidijati, stated that MoF Reg. 44/2026 does not impose restrictions on any person seeking to act as an attorney, pursuant to the Constitutional Court ruling.
"We have already implemented this in MoF Reg. 44/2026; any person may act as an attorney provided they fulfil the competency requirements. The latest Constitutional Court ruling, namely 341/PUU-XXIV/2026, states that the Minister of Finance may only regulate technical administrative matters, and indeed the minister of finance regulation only governs technical administrative procedures," she said. (DDTCNews)
BPK Scrutinises Tax Holiday Duration Assessment at BKPM
An audit conducted by the BPK reveals that the verification of the duration of tax holiday facilities granted under a minister of finance decree does not comply with the applicable provisions. This was set out in the Audit Report (Laporan Hasil Pemeriksaan/LHP in Indonesian) on the Ministry of Investment and Downstreaming/BKPM.
The report disclosed that the Ministry of Investment and Downstreaming/BKPM had added conditions requiring the calculation of the internal rate of return (IRR) and payback period from entrepreneurs applying for a tax holiday.
"The evaluation of the IRR and payback period requirements is conducted after the application documents for the tax holiday facilities have obtained approval from the director of business facilities services," stated the BPK in the audit report. (DDTCNews/Kontan)
DGT to Disburse Refunds Considering Revenue and Deficit
The DGT will focus on disbursing refunds pursuant to the applicable provisions whilst continuing to take fiscal sustainability into consideration.
Director General of Taxes, Bimo Wijayanto, stated that refunds would continue to be disbursed according to the applicable standard operating procedures. However, the government's primary focus is on maintaining revenue and its balance against expenditure.
"We fulfil all legal and regulatory processes, we fulfil the standard operating procedures and we fulfil taxpayers' rights as well. However, there is a focus here. The primary focus is naturally to maintain revenue to sustain the balance against expenditure within the context of managing the deficit," he said. (DDTCNews)
DGT: 5,600 Entities Registered for Global Minimum Tax
The DGT has recorded that at least 5,600 taxpayers had registered as GloBE taxpayers by mid-October 2026.
Director General of Taxes, Bimo Wijayanto, confirmed that all GloBE taxpayer registration and administration processes are carried out through a single platform, namely coretax. Taxpayers may add their status independently via their taxpayer account on coretax.
"The platform for implementing Pillar 2 is coretax. We deploy the data into the taxpayer account via coretax," he stated. (DDTCNews/Bisnis Indonesia/Kontan)
From 2027, DGT to Exchange Crypto Asset Data with Partner Jurisdictions
The DGT will exchange crypto asset data with the tax authorities of treaty partners through the cryptoasset reporting framework (CARF) mechanism starting from 2027.
Deputy Minister of Finance, Nurkholisoh Ibnu Aman, stated that this exchange requires Indonesia to prepare accurate crypto asset data with the support of relevant institutions, namely Bank Indonesia (BI) and the Financial Services Authority (Otoritas Jasa Keuangan/OJK in Indonesian).
"This exchange of information requires responsible data management. We need accurate data, secure systems and compliance with the law. To that end, cooperation between the Ministry of Finance, BI and OJK is required," he said. (DDTCNews)