Hashim Djojohadikusumo Criticizes Indonesia's Tax System and State Revenue

Weak Tax Apparatus Performance

Hashim Djojohadikusumo, brother of President Prabowo Subianto, has strongly criticized Indonesia's tax and customs apparatus for their ineffective performance in collecting state revenue. Speaking at the 'Bedah Buku Indonesia Naik Kelas' event, Hashim stated that the country's tax-to-GDP ratio has remained stagnant between 9-12% for over a decade, placing Indonesia among nations with the weakest tax systems worldwide ¹

Economic Implications of Weak Tax System

Hashim highlighted that the weak tax collection system is a significant vulnerability for Indonesia's national economy. He mentioned that during his task force leadership under President Prabowo, their economic study revealed that the country's state revenue system - including tax, customs, and non-tax revenue - was one of its most critical weaknesses ²

Shadow Economy Impact

The former legislator illustrated the prevalence of Indonesia's shadow economy through a simple example from daily life: transactions at barber shops. He shared his experience with his regular barber from Garut, West Java, where payments are made in cash without receipts or tax collection. This practice reflects the vast untapped potential in state revenue due to unrecorded economic activities ³

Call for Reform

Hashim emphasized that if tax and customs officials performed their duties properly, Indonesia would likely have a budget surplus instead of a deficit. He stressed that effective tax collection could transform Indonesia's fiscal position, making it a wealthy nation rather than one struggling with financial constraints ¹