Executive Summary

Key insights and market outlook

Indonesia has joined the OECD's global initiative for automatic exchange of property ownership and transaction information across borders, following the Joint Statement on December 4, 2025 ¹

⁴. This move will enable the Indonesian Tax Authority (DJP) to access information about Indonesian citizens' overseas property holdings, transactions, and income ¹. The new framework aims to enhance tax compliance and reduce tax evasion through improved international cooperation ².

Full Analysis

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Deep Dive Analysis

Indonesia Strengthens International Tax Cooperation through OECD Membership

Enhanced Transparency in Property Ownership

Indonesia has officially joined the Organisation for Economic Co-operation and Development (OECD)'s initiative for automatic exchange of information on property ownership and transactions across borders ¹

⁴. This significant step follows Indonesia's endorsement of the Joint Statement on December 4, 2025, which establishes the framework for international property information exchange. The move brings Indonesia in line with other participating countries including Belgium, France, Germany, Italy, Korea, Spain, and the UK ⁴.

Impact on Indonesian Taxpayers and Property Holdings Abroad

The new arrangement will enable the Indonesian Tax Authority (DJP) to access comprehensive information about Indonesian citizens' property holdings abroad, including transactions and income generated from these assets ¹

. This enhanced transparency is expected to significantly improve tax compliance and reduce tax evasion related to overseas property ownership. The development is particularly relevant given the increasing trend of Indonesians investing in international property markets ².

Technological and Regulatory Implications

The implementation of this OECD standard comes at a time when property transactions have become increasingly digital and complex, involving various platforms and legal structures ²

. The use of digital marketplaces, online notary services, and special purpose vehicles (SPVs) has made it challenging for tax authorities to track property ownership and transactions. The new framework addresses these challenges by facilitating the automatic exchange of information between participating jurisdictions.

International Cooperation and Information Sharing

The OECD initiative represents a significant enhancement in international tax cooperation. Indonesia has also been strengthening its bilateral tax cooperation, as evidenced by the recent Memorandum of Understanding (MoU) signed with South Korea's National Tax Service (NTS) on mutual assistance in tax collection ³

. This MoU, signed during the 12th Korea-Indonesia Tax Commissioners' Meeting in Jakarta, demonstrates Indonesia's commitment to improving international tax compliance through collaborative efforts.

References