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Purbaya Collaborates with Coordinating Minister for Politics and Security to Strengthen Tax Enforcement, Illegal Cigarettes Become Initial Target

Breaking NewsPurbaya Collaborates with Coordinating Minister for Politics and Security to Strengthen Tax Enforcement, Illegal Cigarettes Become Initial Target

Jakarta (NSM), The government is preparing cross-sector steps to strengthen law enforcement in the field of state revenue. Minister of Finance Purbaya Yudhi Sadewa confirmed that cooperation with the Coordinating Minister for Political and Security Affairs Djamari Chaniago would be carried out immediately to overcome various obstacles in tax audits in the field.

According to Purbaya, this coordination is needed to answer the classic problem that tax officials often face, namely the existence of parties who provide informal protection against tax avoidance practices. In a meeting with the Coordinating Minister for Political and Security Affairs, both parties agreed to strengthen enforcement by involving security forces.

“We agreed to collaborate so that inspections in the field can be carried out more firmly. So far there have always been stories about backing, and that is what we want to fix,” said Purbaya.

Through this collaboration, the police, TNI and other security elements will be involved to support enforcement efforts. The initial focus was directed at the distribution of illegal cigarettes, a sector that is considered prone to leaks and has a significant impact on state revenues.

“In the initial stage, we will first pursue illegal cigarettes. The authorities will be involved so that practices like that no longer feel safe,” he said.

Apart from law enforcement, Purbaya also emphasized the importance of aligning fiscal and monetary policies to maintain a conducive business climate. He believes that strengthening the business world will have a direct impact on improving the tax revenue base in a sustainable manner.

The Ministry of Finance, continued Purbaya, is also carrying out internal improvements. The Coretax system continues to be improved to reduce administrative barriers, while the use of artificial intelligence technology is starting to be implemented to detect indications of unfair reporting, including under-invoicing practices.

Another step being prepared is a major restructuring within the Directorate General of Taxes and the Directorate General of Customs and Excise. These improvements are aimed at strengthening supervision and closing gaps that have allowed violations to escape observation.

Purbaya emphasized that supervision would not be carried out by increasing tax rates. The focus is precisely on detecting business patterns that sell directly to consumers in cash but have the potential to reduce tax obligations, both VAT and PPh. “In the future, with the restructuring of employees and systems, practices like that should no longer be allowed,” he said.

As an illustration, in the 2026 APBN, state revenue is set at IDR 3,153.58 trillion. The target consists of tax revenues of IDR 2,693.71 trillion, non-tax state revenues of IDR 459.2 trillion, and grants of IDR 666.27 billion. The government hopes that this series of strengthening steps can keep this target realistic amidst growing economic challenges.

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