Indonesia's Tax Authority Takes Drastic Measures to Meet Revenue Targets

Addressing Significant Shortfall

The Directorate General of Taxes (DJP) under Indonesia's Ministry of Finance has initiated extraordinary measures to bridge the substantial gap in tax revenue collection. As of October 2025, tax receipts have reached only Rp 1,459 trillion, representing 70.2% of the projected Rp 2,076.9 trillion for the year.

Aggressive Revenue Enhancement Strategies

To address this shortfall, the DJP has taken several unprecedented steps:

1. Cancellation of Employee Leave: All leave for DJP employees has been suspended to maximize workforce availability
2. Summoning High-Net-Worth Individuals: The tax authority is proactively contacting wealthy individuals (colloquially termed "crazy rich") to ensure compliance
3. Intensified Collection Efforts: Enhanced focus on tax compliance and collection from various sectors

Implications and Challenges

This aggressive approach highlights the significant challenge the DJP faces in meeting its annual tax revenue target. The measures indicate a strategic shift towards more assertive tax collection practices, particularly targeting high-net-worth individuals who may have previously been under the radar.

The success of these measures will be crucial in determining whether Indonesia can meet its fiscal obligations and maintain budgetary stability for the remainder of the fiscal year.