IKPI: Major breakthrough needed to realise 2026 tax target

Jakarta (ANTARA) - The Indonesian Tax Consultants Association (IKPI) states that a major breakthrough is needed to realise the 2026 tax target, which is set to increase by 22% compared to the 2025 realisation.

IKPI General Chairman Vaudy Starworld in Jakarta on Thursday emphasised that without significant policy breakthroughs, the risk of a tax revenue shortfall is wide open.

According to him, theoretically, tax revenue growth heavily depends on economic growth, consumption, and taxpayer compliance levels. With an economic growth projection of around 5%, natural tax revenue growth is generally only in the single-digit range.

“When the target is set to grow above 20%, there is a structural gap that is difficult to bridge without extraordinary policies,” he said in his statement.

To date, he continued, no sufficiently strong new fiscal instruments have been visible to drive such a revenue surge, there is no radical expansion of the tax base, no new tax policies that serve as game changers, and administrative reforms are still in the transition phase.

Vaudy also mentioned the implementation of the Coretax system, which still requires time to truly have a significant impact on state revenues.

“Administrative reforms are underway, but still in the transition stage. Their impact cannot immediately drive revenues significantly,” he said.

In addition, he stated that there is still a large compliance gap in Indonesia’s tax system, even though the number of taxpayers continues to increase, the reporting and payment rates have not shown comparable improvements.

“This shows that the main problem is not the number of taxpayers, but the quality of compliance and the effectiveness of supervision,” he said.

In relation to that, he stated that the role of tax consultants is very important as part of the solution to increase state revenues.

Tax consultants, according to him, function as intermediaries bridging the relationship between taxpayers and tax authorities. Through this role, consultants can help increase voluntary taxpayer compliance.

“Tax consultants are not just companions, but also agents for improving compliance,” he said.

He added that in many international practices, tax consultants are an important part of the tax system, especially in helping taxpayers understand increasingly complex obligations.

In addition, tax consultants also serve as educators providing tax understanding to taxpayers, while helping them fulfil their rights and obligations correctly.

Vaudy emphasised that future tax revenue increases cannot rely solely on fiscal policies but must be supported by an ecosystem-based approach.

This approach includes data integration, inter-agency synergy, and optimal use of technology in the tax system.

“Going forward, what is needed is an integrated tax ecosystem. All parties must be involved, including tax consultants,” he said.

He emphasised that strengthening the tax ecosystem architecture is a strategic agenda that the government must immediately promote.

Without such steps, he added, the high tax revenue targets are likely to be unachieved and instead increase pressure on the state budget.

“If there is no major breakthrough, this high target will be difficult to achieve. The shortfall risk is real,” he said.