By: Faranisa Diajeng)*
The Government of Indonesia continues to push tax reform to ensure fiscal resilience and national economic self-reliance. Amid increasingly complex global dynamics—including geopolitical tensions, protectionism, and the turmoil of digital markets—innovative measures are being pursued. One key focus is the government’s intensive efforts to tap into the tax potential of digital transactions, which are growing rapidly alongside the massive expansion of internet-based economic activities.
This commitment was highlighted during a working meeting between the Minister of Finance and Commission XI of the Indonesian House of Representatives (DPR RI), discussing the Budget Work Plan (RKA) and the Government Work Plan (RKP) for the 2026 fiscal year. On that occasion, Deputy Minister of Finance Anggito Abimanyu stated that strategies to strengthen state revenue would focus on utilizing digital data, including social media analysis to track economic activities that have yet to be incorporated into the tax system.
Anggito Abimanyu emphasized that tax potential exploration would be carried out through data analysis and social media monitoring. He stressed that digitalization and data-based monitoring are the government’s main tools to broaden the tax base and reach digital economy players who have so far remained relatively untapped.
This strategy is part of the effort to achieve a tax ratio target of 10.45 percent of gross domestic product (GDP) by 2026, supported by an additional budget request of IDR 1.2 trillion submitted by the Ministry of Finance for the upcoming year. All policies are being directed to ensure that the ratio of state revenue to GDP reaches the range of 11.71–12.22 percent, as a significant milestone in strengthening fiscal independence.
The Directorate General of Taxes (DJP) has also moved quickly. Director General of Taxes Bimo Wijayanto stated that the government has appointed both domestic and foreign marketplace platforms as tax collectors. The legal framework for this policy is stipulated in Minister of Finance Regulation (PMK) Number 37 of 2025, which mandates electronic trading system providers (PMSE) to collect, deposit, and report Article 22 Income Tax (PPh 22) on the income of traders conducting digital transactions.
Domestic digital platforms have already been appointed as tax collectors. This policy is finalized. The DJP also plans to expand tax collection coverage to the crypto asset sector by appointing certain financial service institutions as tax collectors. He added that DJP is strengthening tax system digitalization, including improving compliance risk management.
Furthermore, DJP is collaborating with law enforcement agencies such as the National Police (Polri), the Attorney General’s Office, the Corruption Eradication Commission (KPK), and the Financial Transaction Reports and Analysis Center (PPATK) to monitor illegal economic activities and the underground economy. Joint audits are becoming one of the methods to optimize law enforcement against non-compliant taxpayers. Authorities confirm that there remains untapped tax potential, highlighting the crucial role of supervision and law enforcement.
Nonetheless, the challenges are significant. Ministry of Finance data shows a declining trend in the tax ratio over the past few years. In 2022, the tax ratio stood at 10.38 percent, dropping to 10.31 percent in 2023. Projections for 2024 are even lower, at 10.08 percent, with a slight improvement anticipated to 10.03 percent in 2025.
Tax analyst from the Center for Indonesia Taxation Analysis (CITA), Fajry Akbar, believes that the decline cannot be separated from the national economic slowdown. According to him, to increase the tax ratio, people’s income must grow alongside economic growth. A country can achieve a high tax ratio if its citizens have substantial incomes. Unsurprisingly, countries with high tax ratios typically enjoy high per capita incomes.
Fajry also recommended that the government broaden the tax base through extensification and by utilizing valid third-party data. He assessed that several instruments within the Tax Regulation Harmonization Law have yet to be maximized. Tax policy and regulatory reform must be pursued consistently over the medium term, while in the long term, restructuring of the national tax base is required.
In response to global uncertainties, the government is adopting five main strategies to strengthen the national tax system. Deputy Finance Minister Anggito Abimanyu mentioned that the first strategy is cross-institutional data exchange as the foundation for creating a transparent tax system.
The second strategy focuses on strict oversight of digital transactions, both domestic and international. Third, the government is adjusting import duty tariffs and expanding excise coverage to support downstream industrialization. The fourth strategy targets the optimization of revenues from natural resources, reaffirming President Prabowo Subianto’s commitment to ensuring that every natural resource extraction entity contributes fairly to national fiscal revenue. Finally, the fifth strategy involves integrating taxation and customs systems through Coretax, CEISA, and SIMBARA.
These measures demonstrate the government’s seriousness in pursuing structural transformation in the tax sector while addressing the challenges of an increasingly digital and borderless era. Strengthened regulations, expanded tax collection coverage, and data integration are forming a new foundation for creating a fair, effective, and sustainable tax system. Amid fiscal constraints and global economic pressures, digital tax is not merely a new revenue source, but a key pillar supporting the future of Indonesia’s economy.
*) Public Policy Observer
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