Minister of Finance Rejects New Tax Amnesty, Focus on Tax Enforcement

Finance Minister Purbaya Yudhi Sadewa emphasized that the government will not repeat the tax amnesty program or tax amnesty in the near future. This stance was conveyed in Jakarta on Friday, September 19, 2025, when asked about the inclusion of the Tax Amnesty Bill in the list of the Priority National Legislation Program. They stated that the repeated granting of amnesty would damage fiscal credibility and create erroneous expectations among taxpayers.

Purbaya emphasizes that every time the government opens up the opportunity for tax amnesty, some members of the public are instead tempted to delay their obligations. They assume there will be a similar program in the future that eliminates the burden. He/She considers this kind of thinking unhealthy and capable of undermining tax discipline. In his view, the government must be firm in enforcing the rules so that justice can be felt by all parties who have complied from the outset.

On the other hand, the Indonesian House of Representatives included the Tax Amnesty Bill in its priority list for 2025. Commission XI of the DPR submitted the draft on the grounds that it would provide additional opportunities to increase state revenue. However, discussions are still in the early stages and may not take place this year. Purbaya responds cautiously and asserts that the government prefers to strengthen oversight instruments, including through the Coretax system and inter-agency data exchange.

Finance Minister's Rejection and Policy Considerations

Purbaya, who has just taken office in early September, said that tax amnesty cannot be a recurring instrument. He reminded that similar programs had already been held from 2016 to 2017, with asset declaration results of more than Rp4.8 quadrillion and receipts from ransom money of around Rp135 trillion. In 2022, the government also implemented the Voluntary Disclosure Program with significant results. However, according to him, long-term adherence does not always increase after those two major schemes.

They cited moral hazard as the main reason for the rejection. According to him, amnesties that are carried out repeatedly will encourage taxpayers to keep waiting for new programs. In fact, the state needs stable tax revenue so that development can continue without having to rely on extraordinary policies. The government wants to demonstrate consistency so that the business world has certainty.

Reaction of the DPR and business actors

Some members of the House of Representatives believe that tax amnesty could be a quick solution to increase state revenue. They assess that the potential assets that have not been reported are still large, especially those kept abroad. However, criticism has come from a number of economists who view the short-term benefits as not commensurate with the long-term risks.

The self-employed are divided. Some welcome the government's firm stance because the certainty of fiscal policy is more important for maintaining stability. Some others still hope for leniency, especially for those who faced tax administration problems in the past. Entrepreneurs' organizations urge the government to provide more education and easier administrative procedures so that compliance can improve without the need for a new amnesty.

Impact on Tax Compliance

The government's firm stance means taxpayers can no longer rely on a tax amnesty policy. Companies and high-income individuals should prioritize regular compliance. The Directorate General of Taxes now has a more advanced monitoring system with Coretax, thereby making potential tax evasion easier to detect.

The government is also expanding international data exchange through automatic cooperation between tax authorities. This narrows the space available to hide assets. With that step, the target increase in the tax-to-GDP ratio is expected to be more realistically achievable without the need for a one-off incentive.

This policy is viewed as a positive signal for Indonesia's fiscal credibility in the eyes of investors. The state is regarded as serious about enforcing the rules, not merely pursuing instant revenue. Going forward, consistency will be the key to keeping economic growth stable and enabling business actors to formulate long-term strategies with regulatory certainty.

This government's reaffirmation also signals a new direction in the wake of the cabinet reshuffle. Purbaya, who was previously known as an economist, now holds fiscal control during an important period. They bring an approach that emphasizes discipline and legal certainty. Thus, tax compliance is expected to increase through stronger oversight and education, rather than through repeated tax amnesty.

The Minister of Finance's statement that the tax amnesty will not be repeated sends a clear message to taxpayers and business actors. The government's current focus is enforcement and compliance. Going forward, business actors should pay attention to tax reconciliation, maintain documentation, and prioritize compliance to avoid legal issues.

This issue will continue to develop as the deliberations in the DPR proceed. However, the government's firm stance can determine the direction. To follow the latest developments in fiscal policy, readers can view related articles on Insimen regardingTax revenue for the first semester of 2025andCoretax policy in tax supervision.