DGT‘s Five Strategies to Pursue 10.5% Tax Ratio by 2027

JAKARTA, DDTCNews - The Directorate General of Taxes (DGT) is preparing a minimum of 5 strategies to increase the tax ratio next year. This topic features as one of the reviews in the national media today, Tuesday (16/6/2026).

Director General of Taxes Bimo Wijayanto said the DGT is committed to increasing tax revenue amidst global uncertainty and domestic economic challenges. To that end, the DGT is preparing 5 strategies to boost the tax ratio next year.

First, ensuring that the DGT's data and information systems are reliable and credible. This can be achieved by maximising the use of the coretax system and the utilisation of artificial intelligence (AI) to process, analyse and utilise tax data.

Second, broadening the tax basis by utilising increasingly reliable and credible tax data as well as monitoring the informal sector and the shadow economy. Third, strengthening service delivery and public trust.

In the area of tax services, the DGT will ensure ease of tax payment through the expansion of channels, intensification of online tax education and services as well as the improvement of the integrity of DGT employees.

Fourth, strengthening measurable tax law supervision and enforcement. One approach is to utilise AI and to promote enforcement through a multi-door approach or collaboration with various law enforcement instruments.

Fifth, strengthening tax policies in Indonesia by reviewing regulations, particularly tax regulations that have the potential to establish a policy gap and an administration gap.

"We continue to strive to optimise measurable supervision and law enforcement, whilst sustaining the investment climate and economic growth as well as tax policies,” said Bimo.

On another note, the government has targeted a tax ratio of between 10.02% and 10.5% of the GDP by 2027. This tax ratio target is required to achieve the state revenue ratio of between 11.82% and 12.4% that the government has proposed in the 2027 KEM-PPKF.

In addition to the above topic, there are also reviews covering the tax contributions from extensification and intensification activities as well as discussions relating to the DGT and Directorate General of Customs and Excise (DGCE) budgets, taxpayer complaints concerning refunds and so forth.

The following is the complete review of the tax articles.

DGT Submits Indicative Ceiling of IDR5.4 Trillion for Next Year

In pursuing the tax ratio target for next year, the DGT also submitted an indicative expenditure ceiling of IDR5.4 trillion for 2027 during a meeting with Commission XI of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian). This ceiling is lower than the DGT's 2026 budget following efficiency measures, which stood at IDR5.42 trillion.

"The DGT's indicative ceiling of IDR5.4 trillion is approximately IDR23 billion lower than the 2026 budget allocation following efficiency measures of IDR5.42 trillion," said Director General of Taxes, Bimo Wijayanto.

The indicative ceiling proposed for next year comprises employee expenditure of IDR390 billion, goods expenditure of IDR4.59 trillion and capital expenditure of IDR420 billion. Employee expenditure at the DGT is relatively low, given that such expenditure has been centralised at the Secretariat General of the Ministry of Finance. (DDTCNews)

DPR Member Highlights Taxpayer Complaints Over Policies on VAT Refunds

Commission XI DPR member, Harris Turino, highlighted the obstacles faced by entrepreneurs in obtaining value added tax (VAT) refunds.

Harris stated that numerous entrepreneurs are currently complaining about restrictions on VAT refunds. In his view, refunds should be regarded as a taxpayer's right.

"Numerous companies are complaining about refund restrictions. Refunds are treated as though they are a favour, whereas in reality, they are a right," said Harris at a meeting with the government in Commission XI of the DPR. (DDTCNews)

DGT Discloses Tax Contributions from Extensification and Intensification

Director General of Taxes, Bimo Wijayanto, said intensification activities comprising supervision, audit, collection and law enforcement contributed up to 31.2% of tax revenues through to May 2026.

"In terms of intensification, revenues from supervision, audits, collection and law enforcement, Alhamdulillah, the revenue contribution from intensification is approximately 31.2% until May 2026," said Bimo at a meeting with Commission XI of the DPR.

Extensification activities in the form of the addition of new taxpayers or the reactivation of dormant taxpayers have also generated additional tax revenues of more than IDR20 trillion. (DDTCNews)

DGCE Submits Budget of IDR2.81 Trillion for Next Year

The Directorate General of Customs and Excise (DGCE) submitted an indicative ceiling of IDR2.81 trillion to execute all business plans for 2027. The DGCE's 2027 business plan is designed to support the acceleration of quality growth.

"The DGCE's 2027 business plan is formulated to support the acceleration of quality growth through 3 main programmes supported by a budget of IDR2.81 trillion," said Director General of Customs and Excise, Djaka Budhi Utama, during a working meeting with Commission XI.

Djaka stated that the indicative ceiling of IDR2.81 trillion will be allocated to execute the DGCE's 3 main programmes. (DDTCNews)

Thanks to Coretax, DGT Reports 50,000 New Taxpayers

The DGT has reported the addition of approximately 50,000 taxpayers thanks to coretax. This was conveyed by Director General of Taxes, Bimo Wijayanto, at a working hearing (RDP) with Commission XI of the DPR.

"We have conveyed that coretax, along with intensification and extensification activities, has created a genuinely new tax basis, adding around 50,000-something taxpayers," he said before the DPR's Finance Commission.

According to Bimo, Coretax's capabilities are now increasingly stable in terms of infrastructure and service quality in processing documents relating to taxpayers' rights and obligations, such as the issuance of tax invoices and withholding tax receipts. (bisnis.com)

DGT Claims Indonesia's Tax Collection Costs Lower Than China

The DGT stated that Indonesia's tax collection costs remain lower than those of several countries in the Asian region, such as China, India and the Philippines.

Director General of Taxes, Bimo Wijayanto, stated the ratio of the DGT's budget to tax revenues has continued to show a declining trend in recent years. In 2021, the tax collection costs were recorded at 1.32% and fell to 0.84% in 2026.

In his view, this achievement demonstrates that tax administration management in Indonesia is becoming increasingly efficient. Indeed, Indonesia's tax collection cost ratio currently sits below that of several countries used as comparables by the DGT. (Kontan)