Indonesian Political, Business & Finance News

DJP Blocks 419 Accounts Over Rp1.62 Trillion in Tax Arrears in May 2026

| Source: CNBC Translated from Indonesian | Finance
DJP Blocks 419 Accounts Over Rp1.62 Trillion in Tax Arrears in May 2026
Image: CNBC

Several regional directorates of the Directorate General of Taxes (DJP) under the Ministry of Finance have simultaneously blocked hundreds of taxpayer accounts across various regions with outstanding tax arrears in May 2026.

Most recently, the DJP Banten Regional Directorate blocked 84 taxpayer accounts across 15 banks, including state-owned and private national banks, with a total tax arrears of Rp 330.66 billion.

“The action is expected to deter tax defaulters and enhance awareness and compliance among all taxpayers in meeting their tax obligations,” said DJP Banten Regional Director Aim, quoted from a press release on Friday, 29 May 2026.

The DJP Banten Regional Directorate conducted the simultaneous blocking from 18 to 22 May 2026, involving 12 tax service offices (KPP) within its jurisdiction.

A similar operation was carried out by the DJP South Jakarta II Regional Directorate on 13 May 2026, blocking 60 taxpayer accounts across 17 banks, both state-owned and private national banks.

The total tax arrears recovered through these account blocks in the DJP South Jakarta II jurisdiction amounted to Rp 1.07 trillion.

“We hope this action will deter tax defaulters and improve awareness and compliance among all taxpayers in fulfilling their obligations,” said DJP South Jakarta II Regional Director Imam Arifin in a press statement.

He emphasised that the series of persuasive and active collection measures—including issuing warning letters, enforcement letters, account blocking, and asset seizure—are legal instruments mandated by tax regulations to secure the state’s right to tax revenue.

Prior to the above operations, the DJP West Java I Regional Directorate had already blocked 174 taxpayer accounts with a total arrears of Rp 224.60 trillion on 6 May 2026, involving 16 tax service offices (KPP) within its jurisdiction.

Nandang Hidayat, Head of the Inspection, Collection, Intelligence, and Investigation (PPIP) Division at DJP West Java I, stated that the action was taken to ensure legal certainty and a fair tax environment.

“We are committed to treating all taxpayers equally; those who comply must be protected, while those with arrears must be reminded through legal mechanisms,” said Nandang Hidayat.

“Furthermore, Nandang confirmed that all procedures were carried out in accordance with standard operating procedures (SOP) and applicable regulations.”

“We had previously undertaken persuasive efforts and education, but taxpayers failed to demonstrate good faith in settling their tax debts, necessitating account blocking. We have ensured proper procedures were followed, with all collection steps—from warning letters to enforcement letters—completed before the blocking action,” he added.

The blocking actions were carried out under Law No. 19 of 1997 on Tax Collection with Enforcement Letters, last amended by Law No. 19 of 2000. Account blocking is a step in active collection before seizing account balances to settle tax debts.

With these account blocks, a total of Rp 1.62 trillion in tax arrears from 419 taxpayer accounts were addressed in May 2026.

Similar simultaneous blocking operations were also conducted by DJP East Java I, II, and III Regional Directorates from 6 to 8 May 2026, though the total arrears for those accounts were not disclosed.

They only mentioned that the blocked accounts came from 3,185 taxpayer cases spread across 11 major banks headquartered in Jakarta and Tangerang.

Simultaneous blocking was carried out by representatives of National Tax Collectors from each Tax Service Office (KPP) under the East Java Regional Directorates. Besides bank accounts, the DJP also traced other financial assets held by financial institutions, such as securities sub-accounts, insurance policies, and other financial instruments, in accordance with applicable regulations.

Blocking actions were taken against taxpayers who had received warning and enforcement letters but failed to demonstrate good faith in settling their debts after the due date. This is part of tax law enforcement efforts to enhance taxpayer compliance.

Max Darmawan, Head of DJP East Java I Regional Directorate, stated that the simultaneous blocking was part of active collection measures conducted in accordance with legal regulations.

“We urge taxpayers with outstanding debts to settle them immediately. The DJP prioritises voluntary compliance, but for those who fail to act in good faith after all collection steps, legal enforcement measures—including account blocking—will be carried out in a measured, professional, and accountable manner,” he added.

The DJP’s authority to request account blocking is regulated under Law No. 19 of 1997 on Tax Collection with Enforcement Letters, as amended by Law No. 19 of 2000.

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