The Indonesian government, through Minister of Finance Purbaya Yudhi Sadewa, is taking firm action to improve tax compliance. One of the key measures is the formation of a special task force to collect outstanding taxes from 40 Chinese steel companies.
Special Task Force for More Effective Enforcement
The task force will operate under the direct supervision of the Secretary General (Sekjen) or Inspector General (Irjen) of the Ministry of Finance. It will involve two key institutions: the Directorate General of Taxes (DGT) and the Directorate General of Customs and Excise (DGCE).
This initiative was taken as conventional tax collection methods were considered less effective in handling complex cases involving large corporations.
Beyond Appeals: Strong Law Enforcement
The government has also received support from the Chinese ambassador to encourage the companies to comply with tax obligations. However, according to the Minister, appeals alone are not sufficient.
Without firm enforcement, violations are likely to continue. Therefore, the government will prioritize stricter enforcement measures moving forward.
Identified Tax Avoidance Practices
Previously, the DGT investigated three steel companies:
- PT PSI
- PT PSM
- PT VPM
These companies were allegedly involved in several tax avoidance practices, including:
- Failure to collect Value Added Tax (VAT)
- Underreporting revenue
- Manipulating tax-related documents
Enforcement to Be Expanded
Going forward, similar enforcement actions will be applied to 40 other companies suspected of using the same schemes.
This move sends a strong signal that the Indonesian government is serious about strengthening tax compliance, particularly among multinational and cross-border businesses.