Indonesia Launches Aggressive Tax Collection Drive

Targeting Rp 60 Trillion in Arrears

The Indonesian government, led by Finance Minister Purbaya Yudhi Sadewa, has launched an intensive effort to collect tax arrears totaling Rp 60 trillion from 200 identified defaulters. This campaign represents a significant step up in the government's tax collection efforts, targeting high-value cases of tax evasion and non-compliance.

Ambitious Collection Targets

By the end of 2025, the government aims to collect at least Rp 20 trillion, with the remaining amount to be pursued in the following years. This phased approach indicates a strategic and determined effort to maximize recovery while maintaining a realistic timeline. The Finance Minister emphasized that the government will not tolerate delaying tactics, stating, "They shouldn't play games with us."

Implications for Tax Compliance

This aggressive tax collection drive signals a tougher stance on tax compliance in Indonesia. The government's focus on high-value cases is likely to have a broader impact on tax behavior across the business community, potentially leading to increased voluntary compliance. The campaign also demonstrates the government's commitment to improving fiscal revenue and reducing the tax gap.