BPK Finds 2 DGT System Weaknesses Hindering Tax Optimisation<\/p>\n
JAKARTA, DDTCNews - The Audit Board of the Republic of Indonesia\n(Badan Pemeriksa Keuangan\/BPK in Indonesian) has identified weaknesses\nin the Directorate General of Taxes\u2019 Information System (Sistem\nInformasi Ditjen Pajak\/SIDJP in Indonesian) that could potentially\nimpede the optimisation of tax revenue. This topic features among the\nnational media reviews today, Monday (19\/10\/2026).<\/p>\n
The BPK stated that the weaknesses in the SIDJP relate primarily to 2\nmatters: the detection of tax payment non-compliance and the\nverification of the conformity of tax invoices with transactions and VAT\nreporting.<\/p>\n
\u201cIssues concerning weaknesses in the internal control system (sistem\npengendalian intern\/SPI in Indonesian) and non-compliance that are\nstrategic and\/or cross-cutting in nature, based on the audit findings of\nthe LKKL and LKBUN for 2025, include: weaknesses in the Ministry of\nFinance\u2019s (MoF) SIDJP in supporting the optimisation of tax revenue,\u201d\nstated the BPK in its Summary of Audit Report (IHPS) Semester\nI\/2026.<\/p>\n
The BPK outlined 2 findings relating to the weaknesses of the SIDJP.\nFirst, the SIDJP is not yet adequate in mitigating tax payment\nnon-compliance.<\/p>\n
The system is also not yet capable of quickly and accurately\ndetecting late payments, tax underpayments or tax payments that do not\ncorrespond to the relevant taxable period. This condition potentially\nresults in administrative penalties that ought to be collected not being\nfollowed up through the issuance of a notice of tax collection (surat\ntagihan pajak\/STP in Indonesian).<\/p>\n
\u201cThere is potential revenue from administrative penalties that has\nnot yet been followed up on through the issuance of a notice of tax\ncollection (STP),\u201d noted the BPK.<\/p>\n
Second, the SIDJP is not yet fully capable of verifying and\nvalidating the conformity between tax invoices, the transactions and\npayments underlying the issuance of tax invoices and VAT reporting in\nthe periodic VAT returns.<\/p>\n
According to the BPK, this weakness potentially causes tax invoices\nthat have not been filed by taxpayers to go undetected by the\nsystem.<\/p>\n
\u201cThe SIDJP is not yet fully capable of verifying and validating the\nconformity of tax invoices with transactions, payments and VAT reporting\nin the periodic VAT returns, such that there are indications of tax\ninvoices that have not been filed by taxpayers,\u201d explained the BPK.<\/p>\n
In addition to the above topic, there is a review of the DGT\u2019s\nclarification on the issue of the rights of taxpayers\u2019 attorneys. There\nis also a discussion of the BPK\u2019s findings on tax holiday facilities,\nthe number of entities registered as GloBE taxpayers and other\nmatters.<\/p>\n
The following is a full review of the tax-related articles.<\/p>\n
BPK\u2019s SIDJP Recommendation on Tax Underpayment\/Late Payment\nDetection<\/p>\n
The BPK has recommended that the Minister of Finance evaluate the\nimplementation of the SIDJP in detecting late payment and\/or tax\nunderpayments, including those arising from legal remedy decisions that\nhave acquired permanent legal force (inkrah) resulting in tax\nunderpayments.<\/p>\n
The BPK has also urged the Minister of Finance to follow up on the\nresults of that evaluation according to the BPK\u2019s recommendations from\nprevious audit findings.<\/p>\n
\u201cAs well as to follow up on the results of that evaluation as\npreviously recommended in the BPK\u2019s earlier audit findings,\u201d stated the\nBPK in the IHPS Semester I\/2026. (DDTCNews)<\/p>\n
DGT: MoF Reg. 44\/2026 Does Not Restrict Rights of Tax Attorneys<\/p>\n
The DGT has confirmed that the regulation of taxpayers\u2019 attorneys in\nthe Minister of Finance Regulation (MoF Reg.) 44\/2026 is consistent with\nConstitutional Court (MK) Decision Number 63\/PUU-XV\/2017 as well as the\nmost recent ruling, namely Constitutional Court Decision Number\n341\/PUU-XXIV\/2026.<\/p>\n
The Head of the Sub-Directorate of the Regulation of General\nProvisions and Tax Procedures and Tax Collection Using Distress Warrants\nat the DGT, Meidijati, stated that MoF Reg. 44\/2026 does not impose\nrestrictions on any person seeking to act as an attorney, pursuant to\nthe Constitutional Court ruling.<\/p>\n
\u201cWe have already implemented this in MoF Reg. 44\/2026; any person may\nact as an attorney provided they fulfil the competency requirements. The\nlatest Constitutional Court ruling, namely 341\/PUU-XXIV\/2026, states\nthat the Minister of Finance may only regulate technical administrative\nmatters, and indeed the minister of finance regulation only governs\ntechnical administrative procedures,\u201d she said. (DDTCNews)<\/p>\n
BPK Scrutinises Tax Holiday Duration Assessment at BKPM<\/p>\n
An audit conducted by the BPK reveals that the verification of the\nduration of tax holiday facilities granted under a minister of finance\ndecree does not comply with the applicable provisions. This was set out\nin the Audit Report (Laporan Hasil Pemeriksaan\/LHP in Indonesian) on the\nMinistry of Investment and Downstreaming\/BKPM.<\/p>\n
The report disclosed that the Ministry of Investment and\nDownstreaming\/BKPM had added conditions requiring the calculation of the\ninternal rate of return (IRR) and payback period from entrepreneurs\napplying for a tax holiday.<\/p>\n
\u201cThe evaluation of the IRR and payback period requirements is\nconducted after the application documents for the tax holiday facilities\nhave obtained approval from the director of business facilities\nservices,\u201d stated the BPK in the audit report. (DDTCNews\/Kontan)<\/p>\n
DGT to Disburse Refunds Considering Revenue and Deficit<\/p>\n
The DGT will focus on disbursing refunds pursuant to the applicable\nprovisions whilst continuing to take fiscal sustainability into\nconsideration.<\/p>\n
Director General of Taxes, Bimo Wijayanto, stated that refunds would\ncontinue to be disbursed according to the applicable standard operating\nprocedures. However, the government\u2019s primary focus is on maintaining\nrevenue and its balance against expenditure.<\/p>\n
\u201cWe fulfil all legal and regulatory processes, we fulfil the standard\noperating procedures and we fulfil taxpayers\u2019 rights as well. However,\nthere is a focus here. The primary focus is naturally to maintain\nrevenue to sustain the balance against expenditure within the context of\nmanaging the deficit,\u201d he said. (DDTCNews)<\/p>\n
DGT: 5,600 Entities Registered for Global Minimum Tax<\/p>\n
The DGT has recorded that at least 5,600 taxpayers had registered as\nGloBE taxpayers by mid-October 2026.<\/p>\n
Director General of Taxes, Bimo Wijayanto, confirmed that all GloBE\ntaxpayer registration and administration processes are carried out\nthrough a single platform, namely coretax. Taxpayers may add their\nstatus independently via their taxpayer account on coretax.<\/p>\n
\u201cThe platform for implementing Pillar 2 is coretax. We deploy the\ndata into the taxpayer account via coretax,\u201d he stated. (DDTCNews\/Bisnis\nIndonesia\/Kontan)<\/p>\n
From 2027, DGT to Exchange Crypto Asset Data with Partner\nJurisdictions<\/p>\n
The DGT will exchange crypto asset data with the tax authorities of\ntreaty partners through the cryptoasset reporting framework (CARF)\nmechanism starting from 2027.<\/p>\n
Deputy Minister of Finance, Nurkholisoh Ibnu Aman, stated that this\nexchange requires Indonesia to prepare accurate crypto asset data with\nthe support of relevant institutions, namely Bank Indonesia (BI) and the\nFinancial Services Authority (Otoritas Jasa Keuangan\/OJK in\nIndonesian).<\/p>\n
\u201cThis exchange of information requires responsible data management.\nWe need accurate data, secure systems and compliance with the law. To\nthat end, cooperation between the Ministry of Finance, BI and OJK is\nrequired,\u201d he said. (DDTCNews)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bpk-identifies-two-weaknesses-in-dgt-system-hindering-tax-optimisation-1792468214", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }