Tax Collection Efforts Face Challenges, Purbaya Aims to Collect Rp 20 Trillion by Year-End
The Indonesian Finance Ministry's pursuit of tax evaders is encountering hurdles, with projections indicating a significant shortfall in revenue collection. Finance Minister Purbaya Yudhi Sadewa revealed that the ministry has only managed to secure Rp 8 trillion (US$478 million) so far in 2025, falling short of the Rp 50 trillion to Rp 60 trillion target from taxpayers who have failed to pay their dues.
In a press briefing, Purbaya emphasized the ministry's determination to recover the outstanding taxes, stating, 'We will pursue the total amount slowly but surely, and we advise the evaders not to take us lightly.' He added, 'Some taxpayers have not paid in full, and we will reach out to them to ensure timely tax payments. We will send reminders, or what we call 'love letters, to those who are late with their tax obligations.'
The minister acknowledged that some violators face financial constraints and can only pay in installments. He also mentioned that the cases of these evaders are subject to final and binding court rulings. Tax Director General Bimo Wijayanto provided a more optimistic outlook, suggesting that the ministry could collect around Rp 20 trillion by the end of the year, citing liquidity issues among some evaders as a reason for potential debt restructuring.
Despite the challenges, the ministry remains committed to its tax collection goals. However, the progress made so far is modest, with Rp 8 trillion collected, an increase from the Rp 7 trillion collected as of October 8. The tax crackdown is necessary to address the 4.4% year-on-year decline in total tax revenue during the first nine months of the year.
