Indonesia Strengthens Tax Collection: New Regulations Allow Seizure of Listed Shares

Enhanced Tax Enforcement Measures

The Indonesian government, through the Directorate General of Taxes (DJP), has implemented a new regulation (PER-26/PJ/2025) enabling the seizure and sale of shares traded on the stock exchange to settle tax arrears. This significant development in tax enforcement was announced on January 15, 2026, and represents a major step in strengthening the country's tax collection mechanisms.

Key Features of the New Regulation

1. Legal Basis: The new rule is derived from Minister of Finance Regulation (PMK) No. 61/2023 concerning Procedures for Tax Collection
2. Scope: Includes shares traded on the Indonesian stock exchange
3. Implementation: Requires DJP to maintain specific accounts for seizure and sale processes
4. Coordination: Involves OJK, Indonesian Central Securities Depository, and banks

Implementation Process

The seizure process begins with the DJP issuing a seizure order, followed by blocking the shares through the OJK and Indonesian Central Securities Depository. The process involves:

1. Account Requirements: DJP must maintain an effect account, Customer Fund Account, and Temporary Shelter Account
2. Information Request: DJP must request information about the taxpayer's financial accounts, including Single Investor Identification (SID) numbers
3. Share Blocking: Shares are blocked through the Indonesian Central Securities Depository
4. Fund Blocking: Funds are blocked through the Customer Fund Account banks

Implications for Taxpayers and Market Participants

This new regulation has significant implications for both taxpayers and market participants:

1. Increased tax compliance: The measure is likely to encourage taxpayers to settle their tax obligations
2. Market implications: Potential impact on stock trading activities of delinquent taxpayers
3. Regulatory coordination: Demonstrates enhanced cooperation between tax authorities and financial regulators

Conclusion

The new regulation marks a significant development in Indonesia's tax enforcement framework, providing additional tools for tax authorities to collect outstanding tax revenues. While it represents a strong measure to address tax non-compliance, its implementation will require careful coordination between various financial market stakeholders.