Fiscal Dilemma and Oversight Tightening: Gold Export Duty Takes Effect, Tax Compliance Drops, and Export Foreign Exchange is Centralized

In the latest fiscal policy developments, public attention is focused on the government's steps to tighten state revenue from export commodities, which runs parallel to challenges in fiscal integrity and declining tax compliance. The Government officially imposed an Export Duty (BK) on gold with a maximum tariff of 15% to optimize the contribution of the upstream sector. At the same time, an OECD survey revealed low public tax compliance, primarily triggered by concerns over corruption of public funds. This decline in compliance is even occurring across all taxpayer segments. To strengthen oversight, the Finance Minister centralized Export Proceeds Foreign Exchange (DHE) from Natural Resources (SDA) to Himbara banks, a policy that could pressure private banks. The overall development illustrates the tension between tightening levies and the challenge of maintaining fiscal integrity.

The Government has issued regulations that formalize the collection of the Export Duty (BK) on gold with a maximum tariff of 15%. This measure aims to secure state revenue from mineral commodities. In addition to the levy, the oversight of illegal used clothing at Batam Customs was tightened following an ultimatum from the Finance Minister, where this measure aims to protect domestic industry and prevent smuggling.

Meanwhile, the Finance Minister instructed the centralization of foreign exchange (Forex) from Natural Resources Export Proceeds (DHE SDA) to Himbara banks. This policy potentially pressures the operations of private banks, while also serving as a strategic government step in securing foreign exchange reserves.

On the other hand, fiscal authorities face serious internal challenges. A decline in tax compliance is reported to be occurring across all taxpayer segments. This data demonstrates a major challenge for tax authorities in achieving revenue targets. A survey conducted by the OECD revealed that the main factor for Indonesian citizens' reluctance to pay taxes is the perception of corruption of tax funds. This finding indicates a problem with fiscal integrity that affects compliance.

The latest news has crucial implications for state revenue, fiscal integrity, and the banking sector. The BK on gold of up to 15% implies an increase in revenue from the mining sector but poses challenges for the gold upstream industry. The decline in tax compliance across all segments, exacerbated by the perception of corruption (OECD Survey), implies the necessity of massive reform in the governance and transparency of tax fund utilization. Meanwhile, the centralization of DHE SDA to Himbara implies a strengthening of the liquidity of state-owned banks, but constricts the operating space for private banks in foreign exchange management.

In summary, the government is demonstrating a commitment to tightening revenue through the Gold Export Duty and the oversight of illegal goods (used clothing). However, this effort is overshadowed by a major internal challenge: the decline in tax compliance across all segments triggered by fiscal integrity issues. The centralization of DHE SDA is the government's strategy to secure foreign exchange, but it requires risk mitigation to avoid disrupting the balance of the national banking sector.