Executive Summary

Key insights and market outlook

Finance Minister Purbaya Yudhi Sadewa felt targeted by President Prabowo Subianto's comments during a cabinet retreat about being deceived by tax and customs officials. Prabowo questioned whether they would continue to be misled by tax and customs authorities. Purbaya interpreted these remarks as directed at him despite Prabowo not directly addressing him. The comments highlighted concerns about under invoicing practices and tax evasion involving officials from the Directorate General of Taxes (DJP) and Directorate General of Customs and Excise (DJBC).

Full Analysis

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Deep Dive Analysis

Finance Minister Purbaya Feels Targeted by Prabowo's Tax and Customs Remarks

Cabinet Retreat Comments Spark Concern

During the second cabinet retreat held in Hambalang, Bogor, West Java on January 6, 2026, President Prabowo Subianto made comments that Finance Minister Purbaya Yudhi Sadewa felt were directed at him ¹

². Prabowo questioned whether they would continue to be deceived by tax and customs officials, which Purbaya interpreted as a message to him despite not being directly addressed.

Under Invoicing and Tax Evasion Concerns

The President's remarks specifically highlighted ongoing issues with under invoicing practices that remain undetected and tax evasion involving officials from DJP and DJBC ¹

. Purbaya acknowledged these concerns and recognized the need for improvement in these areas. The comments underscored the challenges faced by the Ministry of Finance in addressing these persistent issues.

Implications for Tax and Customs Administration

Prabowo's comments during the retreat have brought attention to the effectiveness of tax and customs administration in Indonesia. The Ministry of Finance will likely face increased scrutiny regarding their handling of under invoicing and tax evasion cases. Strengthening compliance and oversight will be crucial in addressing these concerns and maintaining public trust.

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