Civil Coalition Rejects Involvement of Village Supervisory NCOs in Tax Oversight

The Civil Society Coalition for Security Sector Reform has rejected a policy by the Ministry of Finance’s Directorate General of Taxes (DJP) that involves the Indonesian Armed Forces’ Village Supervisory Non-Commissioned Officers (Babinsa) in monitoring taxpayer compliance down to the village level. Coalition representative Ardi Manto assessed that the policy of collecting tax data through a network of military personnel is highly dangerous as it blurs the boundary between civilian affairs and the military’s defence function. “The presence of Babinsa in tax matters is a manifestation of a politics of fear constructed by the state towards the people, particularly targeting vulnerable groups, small business owners, farmers, fishermen, and informal workers. In this context, citizens are monitored not as taxpayers with rights, but as objects of security surveillance,” Ardi said in an official statement on Tuesday (21/7). Ardi stressed that, from a regulatory standpoint, the involvement of Babinsa in the taxation domain is not aligned with the primary duties and functions of the Indonesian Armed Forces as a state defence instrument, as stipulated in Law No. 34/2004 in conjunction with Law No. 3/2025 on the Indonesian Armed Forces. According to him, monitoring tax compliance and mapping citizens’ economic potential is not part of Military Operations Other Than War (OMSP) and cannot be legalised merely through an administrative circular. “Tax monitoring and collection are civilian government administrative functions that must be carried out based on the principles of legality and public service. Involving Babinsa shifts the approach from voluntary compliance to a security approach,” he explained. Beyond violating the principle of civilian supremacy, Ardi also highlighted the potential for breaches of taxpayer privacy and data confidentiality. Data concerning citizens’ assets, income, and financial transactions is sensitive information that should be strictly managed by accountable civilian authorities. The accumulation of tax data in the hands of territorial apparatus outside the official DJP structure raises concerns about opening the door to intimidation, data misuse, and the stigmatisation of ordinary citizens. “If the government wants to improve tax compliance, the path it should take is not expanding the involvement of security forces, but rather improving service quality, simplifying procedures, and ensuring fairness in the tax burden. Sustainable compliance is built through trust, not fear,” Ardi asserted. On this basis, Ardi stated that the coalition urges the government to cancel the policy of involving the military in tax governance to safeguard the military reform agenda and respect citizens’ constitutional rights. “The DJP and the Ministry of Finance must immediately revoke the provisions that open the door for the involvement of Babinsa in building information networks for tax compliance monitoring,” he concluded. The controversy stems from a circulated Director General of Taxes Circular Number SE-8/PJ/2026 concerning Guidelines for Taxpayer Compliance Monitoring, which explicitly lists Babinsa and Bhabinkamtibmas as part of the tax information network development. The circular states that tax compliance monitoring activities begin with systematic identification and data collection to support effective and measurable oversight functions. These activities are conducted through various methods and approaches, including visitations, canvassing, direct observation, building information networks (via Babinsa/Bhabinkamtibmas), assessments using remote sensing technology, web scraping, and the utilisation of media information. Additionally, monitoring activities are carried out through journal or scientific paper reviews, analysis of unidentified data, taxpayer dissections, economic area dissections, mirroring of audit or investigation results, taxation partnerships, and various other methods not contrary to legal provisions.