Indonesian Government Intensifies Tax Compliance Measures

Crackdown on Foreign Companies

Finance Minister Purbaya Yudhi Sadewa revealed that certain foreign companies, particularly from China, are operating in Indonesia without fulfilling their tax obligations ¹

. The minister expressed surprise that these companies, some of which are well-known, have managed to evade tax payments despite being under the scrutiny of tax authorities. Purbaya mentioned that the ministry is compiling a list of these companies and is considering appropriate action.

Under-Invoicing by Palm Oil Companies

In a related development, Purbaya disclosed that 10 major palm oil companies have been found to be under-invoicing their imports by as much as 50% ⁵

. This practice involves reporting lower transaction values in customs documents to reduce import duties and taxes. The minister emphasized that these companies will face consequences for their actions.

Strengthening Tax Supervision

To combat such practices, the Directorate General of Taxes (DJP) is enhancing its surveillance capabilities through improved data exchange and analysis ⁷

. The DJP has issued a significant number of tax investigation letters (SP2DK) as part of its efforts to ensure compliance. By leveraging the National Single Window (LNSW) system, the government can now analyze data more effectively, leading to better detection of tax evasion schemes.

Impact on Tax Revenue

The DJP reported that as of January 8, 2026, 67,769 annual tax returns had been filed, with 1,011 cases identified as underpaying taxes, amounting to Rp 57.8 billion ³

. The government is working to prevent a significant shortfall in tax revenue, a challenge faced in the previous year.