Third Quarter Economy Predicted Lowest, Ministry of Finance Responds with 'Lapor Pak Purbaya', Intensified Tax Compliance, and Logistics Efficiency

The current period is marked by significant challenges on the domestic demand side, with a projected economic slowdown due to a decline in public purchasing power. Facing this situation, the Ministry of Finance (Kemenkeu), along with relevant authorities, is taking strategic steps to strengthen public service governance and enhance logistics efficiency. These efforts include the launch of a new complaints channel by the Finance Minister and the reinforcement of international cooperation by Customs and Excise to reduce costs and promote smooth trade flow.

The economy for the third quarter of 2025 is predicted to be the lowest of the year, caused by slow public spending. This consumption slowdown indicates the need for more effective government stimulus to boost domestic growth. Responding to this challenge, the government is improving governance and fiscal compliance. Indonesian citizens can now file complaints about tax and customs services through a new channel named "Lapor Pak Purbaya" (Report to Mr. Purbaya), aiming to increase accountability and accelerate response to complaints. Furthermore, the effort to increase the tax compliance rate is driven through tripartite synergy that has reached 97 regions, aiming to expand the tax base and ensure all Taxpayers (WP) correctly fulfill their fiscal obligations.

On the trade policy front, the government is taking steps to protect domestic industries and increase revenue. Local producers are cheerful because electronic imports will be subject to an additional tariff. This policy aims to protect domestic industry from the influx of imported goods, while also being expected to enhance the competitiveness of local products and optimize Import Duty revenue.

Meanwhile, to compensate for the potential domestic economic slowdown with improved foreign trade performance, the Directorate General of Customs and Excise (DJBC) signs an agreement with Japan, which potentially reduces logistics costs. This cooperation is carried out to simplify customs procedures, aiming to enhance the efficiency of international trade and boost export-import performance.

The third quarter economic slowdown caused by weak consumption is an urgent challenge for the government. The Kemenkeu's response to this challenge is both supply-side and governance-side. The opening of the "Lapor Pak Purbaya" channel and the tripartite synergy for tax compliance demonstrate a focus on improving service quality and expanding the tax base. Meanwhile, the additional tariff policy on electronic imports gives a fresh impetus to local industries. In the trade sector, the Customs and Excise-Japan agreement potentially reduces logistics costs, which is hoped to offset the impact of the domestic consumption slowdown with increased foreign trade efficiency.

The latest developments reflect a focus on administrative improvement and efficiency (governance) as a response to macro weakening (lowest third-quarter economy). The success of future fiscal reform will be heavily determined by the Directorate General of Taxes (DGT)'s ability to resolve the restitution issue and implement the Coretax System effectively and comprehensively. On the other hand, regulatory certainty regarding Export Proceeds Foreign Exchange (DHE) from Natural Resources is a vital element in maintaining monetary stability and strengthening the country's foreign exchange reserves.