Public Awaits New Director General of Taxes’ Performance, Coretax ASAP

In her remarks, Sri Mulyani addressed a number of pressing priorities awaiting the attention of Bimo in his new capacity, inter alia, the public’s anticipation regarding the continued enhancement of the performance of the coretax system.

Sri Mulyani mentioned that Bimo would be afforded a minimum of one month to conduct a thorough assessment of the coretax system’s current challenges and to devise effective solutions. The proposed solutions, she added, will be formally conveyed by the Directorate General of Taxes (DGT) in a forthcoming press conference.

“We will ask Mr. Bimo to first take a comprehensive look internally. He will be given one month to examine all aspects—data, facts and the current realities—from the fresh perspective of a newly appointed Director General of Taxes,” she remarked.

On another note, the DGT has reiterated its institutional commitment to advancing the functionality and reliability of the coretax system. In line with this, the DGT has confirmed the existence of a comprehensive roadmap to improve coretax applications, databases and infrastructure.

The former director general of taxes Suryo Utomo disclosed that the bug in the coretax would be fixed no later than July 2025. Currently, 18 key business processes remain affected by system bugs, particularly those governing taxpayer business registration, tax return management and payment.

In addition to the appointment of the new director general of taxes and the pressing reform agenda he inherits, several other fiscal developments warrant close examination. These include the Minister of Finance’s message to the newly instated director general of customs and excise—an appointee with a military background, clarification by the Indonesian Financial Transaction Reports and Analysis Center (Pusat Pelaporan dan Analisis Transaksi Keuangan/PPATK in Indonesian) regarding recent account blocking, the latest updates on the prospects of a renewed tax amnesty initiative and the ongoing contraction of tax revenue performance.

Presented below is a detailed overview of the tax articles.

Military Background Enriches the Ministry of Finance

Sri Mulyani officially inaugurated Djaka Budi Utama as the new director general of customs and excise, succeeding Askolani who has been in office since 12 March 2021.

Emphasizing the magnitude of the Directorate General of Customs and Excise (DGCE) is a large organization that leads more than 15,000 ranks. To Djaka who comes from the military, he emphasized 2 important tasks, namely collecting state revenues and eradicating illegal activities that interfere with revenue performance.

—with an extensive workforce exceeding 15,000 personnel—Sri Mulyani underscored the pivotal roles of revenue collection and the eradication of illicit activities undermining revenue performance. Drawing on his military background, Djaka is entrusted with fortifying these core functions.

"The appointment of Mr. Djaka not only infuses strategic values but also augments the Ministry’s ability to coordinate seamlessly and effectively with law enforcement and other agencies," she stated.

New Officials Urged to Boost State Revenues

Minister of Finance Sri Mulyani Indrawati has called on newly appointed echelon I officials in charge of state revenues to align with President Prabowo Subianto's expectations.

During the inauguration of 22 echelon I officials within the Ministry of Finance, including the Director General of Taxes Bimo Wijayanto and the Director General of Customs and Excise Djaka Budi Utama, Sri Mulyani highlighted that the first echelon officials of the Ministry of Finance in the field of state revenues have been entrusted by the president to safeguard state revenues.

“Mr. Bima [director general of taxes] and Mr. Djaka [director general of customs and excise] have both been summoned in person by the president, received his directives as well as duties. Despite being a key pillar of national development, state revenues continue to present some of the most significant challenges,” she stated.

Explanation of Account Blocking

The Indonesian Financial Transaction Reports and Analysis Center (Pusat Pelaporan dan Analisis Transaksi Keuangan/PPATK in Indonesian) has implemented temporary blocking measures on bank accounts identified as dormant.

According to PPATK, temporary blocking is intended to curb the illicit practice of buying and selling dormant accounts, which are frequently exploited for online gambling transactions and other criminal activities.

“Based on PPATK’s analysis and examination, more than 28,000 accounts in 2024 were found to have originated from account trading and used to facilitate online gambling deposits,” the agency stated in an official statement.

The House of Representatives Has Yet to Deliberate the Tax Amnesty Draft Law

The discussions of the Tax Amnesty Draft Law between the government and Commission XI of the House of Representatives are not expected to take place in the near future.

Chairman of Commission XI Mukhamad Misbakhun stated that Commission XI is currently prioritising the revision of Law 4/2023 concerning the Development and Strengthening of the Financial Sector (Pengembangan dan Penguatan Sektor Keuangan/PPSK in Indonesian). Further, Commission XI has not established a working committee (panitia kerja/panja in Indonesian) to initiate discussions on the Tax Amnesty Draft Law.

“Not yet, we have only been discussing the P2SK Law,” he remarked.

Tax Revenues Continue to Contract

Minister of Finance Sri Mulyani Indrawati addressed the ongoing contraction in tax revenue for the January-April 2025 period, which declined by 10.75% year-on-year.

This contraction is underscored by the higher tax revenues recorded from January to April 2024, when revenue amounted to IDR624.19 trillion, compared to only IDR557.10 trillion realised in the corresponding months of 2025.

Nonetheless, Sri Mulyani highlighted gross tax revenues grew positively by 7% in April 2025, whereas April 2024 only saw IDR248.7 trillion in revenue realisation. Notably, in presenting this performance, she used one month as a sample rather than the cumulative figures for the January–April 2025 period. (sap)