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Government Tightens Oversight as Tax Revenue Rises 30% in January

Arnoldus Kristianus
February 4, 2026 | 11:12 am
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Officers provide consultations for taxpayers at the Directorate General of Taxes (DGT) Pratama Meulaboh Tax Service Office (KPP), West Aceh, Aceh, Friday, Jan. 9, 2026. (Antara Photo/Syifa Yulinnas/YU).
Officers provide consultations for taxpayers at the Directorate General of Taxes (DGT) Pratama Meulaboh Tax Service Office (KPP), West Aceh, Aceh, Friday, Jan. 9, 2026. (Antara Photo/Syifa Yulinnas/YU).

Jakarta. Indonesia booked a strong start to 2026, with tax revenue in January growing 30% year-on-year, as the government called on businesses to strengthen compliance amid the rollout of the new Coretax system.

Finance Minister Purbaya Yudhi Sadewa said preliminary data showed a sharp pickup in collections at the beginning of the year. “The latest figures we received show that January tax revenue recorded net growth of 30%,” Purbaya said at the 2026 Indonesia Economic Summit, organized by the Indonesian Business Council in Jakarta on Tuesday.

Based on Finance Ministry data, tax revenue stood at Rp 88.89 trillion ($5.33 billion) as of Jan. 31, 2025. With 30% growth, January 2026 revenue is estimated at Rp 115.56 trillion.

Purbaya linked the improvement to stronger domestic economic conditions, stressing the close relationship between growth and state revenue. “Tax revenue cannot be separated from economic growth. When the economy improves, it creates a domino effect on tax receipts,” he said.

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“So the situation is good. The economy is growing better.”

To secure this year’s Rp 2.35 quadrillion tax revenue target, the Finance Ministry is also moving to tighten internal governance. Purbaya said the government will rotate 70 tax officials this week. “There will be a rotation of tax officials, most likely on Thursday,” he said.

The reshuffle follows the tax authority’s failure to meet its 2025 revenue target and recent corruption cases involving tax officers. Earlier this year, the Corruption Eradication Commission (KPK) arrested three officials from a North Jakarta tax office for allegedly accepting bribes to reduce a company’s tax liabilities.

Investigators said the officials cut a company’s tax bill from Rp 75 billion to Rp 15.7 billion, allegedly receiving Rp 4 billion in return.

Meanwhile, tax consultant Ariel Sharon, a senior associate at One Community Consultant, warned businesses that the Coretax system significantly raises compliance risks if data are not aligned. “With Coretax, discrepancies between taxpayer-reported data and what the authority holds are much easier to detect,” Ariel said in a statement on Monday. “For businesses, this is a clear signal to strengthen compliance systems.”

He added that SP2DK requests should no longer be treated as routine administration. “In the Coretax era, SP2DK is part of system-based supervision and must be managed as a strategic business risk,” Ariel said. “Misalignment between financial statements and tax filings can increase correction risks and affect cash flow and business planning.”

Separately, the Directorate General of Taxes reported 1,150,414 annual tax returns filed as of Feb. 2, 2026, 06:00 a.m., according to tax office spokesperson Rosmauli.

The tax authority also recorded 12.92 million activated Coretax accounts, mostly individual taxpayers. Rosmauli urged taxpayers who have yet to file to activate their Coretax accounts and submit returns on time. “Taxpayers who fail to submit their annual returns will be subject to administrative penalties,” she said.

Late filings carry fines of Rp 100,000 for individual taxpayers and Rp 1 million for corporate taxpayers.

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