Tax Authoritys Three New Strategies: Synergy in Financial Intelligence, Strong Warning for "Non-Compliant" Businesses, and Overhaul of Beneficial Owner Data.

DGT Strengthens Synergy with PPATK-BPKP, Financial Intelligence Data Utilization Yields IDR 18.47 Trillion Revenue

The Directorate General of Taxes (DGT) of the Ministry of Finance reported the successful utilization of financial intelligence data from the Financial Transaction Reports and Analysis Center (PPATK), which contributed an additional IDR 18.47 trillion in state revenue during the 2020–2025 period. This success has prompted the formal strengthening of synergy through the signing of a Cooperation Agreement (PKS) between the DGT, PPATK, and the Financial and Development Supervisory Agency (BPKP) on Thursday (9/10/2025).

According to the Director-General of Taxes, Bimo Wijayanto, this PKS serves as the foundation for establishing a joint task force aimed at optimizing inter-agency coordination. The scope of cooperation includes the exchange of data and information, assistance in handling cases, and addressing strategic issues in the field of law enforcement. The active utilization of Analysis Reports (LHA) from PPATK has proven effective in strengthening the DGT's supervision and audit processes.

"With the establishment of this cooperation, inter-agency coordination is expected to run more effectively, ensuring that efforts to increase state revenue and protect natural resources can be implemented optimally and with integrity," stated Bimo. In addition to optimizing tax revenue, the joint task force will also be focused on supporting the national strategy for sustainable forest management, in line with the government's commitment to preventing leakage of state revenue from the natural resource sector.
 

Government Warns Against Tax Avoidance Practices Utilizing the 0.5% Final Income Tax (PPh Final) Facility for MSMEs

The government strictly warned business actors not to misuse the facility for the extension of the 0.5% Final Income Tax (PPh Final) for Micro, Small, and Medium Enterprises (MSMEs). The Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted identified tax avoidance schemes, such as "invoice pooling" (arisan faktur) practices and intentionally splitting businesses (split-off) to keep turnover below the annual threshold of IDR 4.8 billion.

"Don't open [another] store, where an existing store with IDR 5 billion turnover is lowered to a neighboring store, with invoice swaps. We are already somewhat aware of how 'invoice pooling' operates in the market. We must safeguard against this," said Airlangga. This warning aligns with the view of economists who believe the policy has the potential to cause moral hazard and encourage tax avoidance practices by irresponsible taxpayers.

In response to this loophole, policy analysts are urging the government to immediately strengthen the anti-tax avoidance regulatory framework. A prominent proposal is the issuance of derivative regulations to implement the General Anti-Tax Avoidance Rules (GAAR) provision mandated in Law No. 7/2021 on the Harmonization of Tax Regulations (UU HPP). Furthermore, optimizing supervision through the core tax administration system (Coretax) is considered crucial for identifying taxpayers who are no longer eligible for the 0.5% Final Income Tax facility.
 

Government Implements Collaborative Verification Scheme for Beneficial Owner Data

The government has formally changed the reporting scheme for Corporate Beneficial Owners (BO) from a self-declaration mechanism to a collaborative verification model integrated across institutions. This policy is regulated through Minister of Law Regulation Number 2 of 2025 and aims to increase the transparency of corporate ownership, as well as to curb tax avoidance and money laundering practices that exploit complex legal structures.

The Minister of Law, Supratman Andi Agtas, stated that this paradigm shift is necessary because the self-declaration scheme was deemed ineffective, with compliance rates still around 46.9%. According to him, BO transparency is an essential instrument for overcoming the problem of asymmetric information and maintaining the stability of the financial system. "We will shift from a self-declaration paradigm to integrated collaborative verification," asserted Supratman.

Inter-agency synergy within this framework has shown concrete results. The utilization of legal owner and BO data from the Directorate General of General Legal Administration (Ditjen AHU) by the Directorate General of Taxes (DGT) has contributed to securing IDR 896.6 billion in state revenue during the period 2020 through September 2025. This collaboration is now strengthened through a new Cooperation Agreement (PKS) to ensure accurate data verification and improve tax compliance.