Indonesia's Tax Directorate seeks Rp 5.4 trillion budget to boost revenue

Indonesia's Directorate General of Taxes (DJP) has submitted a budget request of Rp 5.4 trillion for the fiscal year 2027. This funding is intended to support efforts to optimize tax revenue collection. The proposed budget comprises Rp 867.89 billion for the State Revenue Management Program and Rp 4.534 trillion for the Management Support Program. The DJP outlined that the State Revenue Management Program will fund technical activities, while the Management Support Program will cover personnel expenses, operational costs, capital expenditure, and information and communication technology. The DJP noted that its budget has seen a downward trend over the past five years. The indicative budget for 2027 is Rp 23 billion lower than the 2026 allocation of Rp 5.42 trillion, following efficiency measures. The DJP plans to utilize the funds for enhancing data and information systems, expanding the tax base, improving public services and trust, strengthening law enforcement, and optimizing tax policies. Five key technical policies are planned, including leveraging data and technology for digital economy and informal sectors, strengthening tax administration with Coretax and CRM-IRE systems, enhancing oversight of corporate groups and prominent individuals, and using a multi-door approach for law enforcement to deter non-compliance. Tax incentives will also be evaluated to support economic growth and competitiveness.