Indonesia's Tax Compliance Gap Revealed: Rp548 Trillion

Significant Tax Discrepancy Uncovered

The Director General of Taxes (DJP) at the Ministry of Finance, Bimo Wijayanto, reported that Indonesia's tax compliance gap stood at Rp548 trillion during the 2016-2021 period. This substantial figure, equivalent to 3.7% of the country's GDP, was derived from World Bank data. The compliance gap represents potential tax non-compliance, avoidance, and evasion by taxpayers.

Official Disclosure and Implications

During a hearing with Commission XI of the DPR RI on November 26, 2025, Bimo emphasized that this gap indicates significant potential revenue loss for the government. The revelation underscores the ongoing challenges faced by Indonesian tax authorities in ensuring compliance and collecting revenue. The tax compliance gap is a critical metric that reflects the effectiveness of tax administration and enforcement mechanisms.

Context and Analysis

The compliance gap of Rp548 trillion highlights the need for enhanced tax administration measures and stricter enforcement to minimize revenue leakage. It also points to potential areas for policy improvement to encourage better tax compliance among Indonesian taxpayers. The government will likely need to implement targeted strategies to address the identified discrepancies and improve overall tax collection efficiency.