Finance Minister Tightens SME Tax Rules Amid Bali Family Office Dispute

The current issues focus on two strategic policies by the Ministry of Finance (Kemenkeu): the enhancement of tax compliance supervision and the plan to develop Bali as a financial center for family offices. This initiative has sparked public discussion regarding the potential risks of tax havens and money laundering practices. Minister of Finance Purbaya Yudhi Sadewa reaffirms his commitment to transparency and enforcing fiscal integrity by opening a direct complaints channel and strengthening inspection mechanisms to curb tax fraud practices.

The Ministry of Finance (Kemenkeu) demonstrates a strong commitment to strengthening internal and external oversight. Finance Minister Purbaya Yudhi Sadewa opens a direct complaints channel via WhatsApp (WA Menkeu) for tax and customs services, aiming to increase transparency and accelerate response to public complaints. On the law enforcement side, Minister Purbaya will check tax data and General Legal Administration (AHU) records to investigate the "facture arisan" (tax invoice fraud) scheme carried out by MSMEs to manipulate the Final Income Tax (PPh). This cross-check reiterates the government's commitment to taking firm action against fiscal fraud, while also safeguarding the integrity of tax incentives.

The government's effort to attract investment and boost revenue is confronted with regulatory controversy. Spokesperson for Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan confirms the plan for the establishment of a Family Office that will make Bali a financial center for conglomerate families, aiming to attract foreign investment and capital. However, the plan to make Bali a financial city for family offices is assessed to potentially resemble a tax haven and be vulnerable to money laundering. This concern creates an urgency for the government to strengthen anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations and oversight to prevent misuse.

Meanwhile, to boost revenue from the consumption sector, the plan to implement excise on Sweetened Beverages in Packaged Form (MBDK) is continued and is predicted to take effect in 2026. This policy is part of the effort to increase state revenue and control the consumption of sweetened beverages, while considering public health and socio-economic aspects. Thus, the government is pursuing a dual track: strict oversight on one side, and the search for new revenue sources on the other.

The Kemenkeu under Minister Purbaya takes proactive steps in combating tax fraud (facture arisan) with data integration (Tax and AHU) and increasing service transparency (WA complaints). These measures contrast with the controversy arising from the Bali Family Office plan. Although the Family Office is justified in aiming to attract capital, the accompanying potential risks of a tax haven and money laundering demand extremely cautious regulatory oversight. Meanwhile, the continuation of the MBDK Excise plan for 2026 shows that the government is still looking for new revenue sources from the consumption sector.

This situation highlights a dual battle in fiscal policy: internal enforcement (facture arisan and service complaints) and the search for new revenue (MBDK Excise). However, the most sensitive issue is the plan for Bali as a Family Office center, which requires a strong guarantee from the government that Indonesia will not become a tax haven and that the anti-money laundering system will function optimally. Minister Purbaya is demanded to provide fair and transparent regulatory certainty for all parties, ranging from MSMEs to global conglomerates.