PPS Taxpayers Facing Re-Examination, APINDO Speaks Out
The Directorate General of Taxes’ (DJP) plan to examine taxpayers participating in the Voluntary Disclosure Programme (PPS) has drawn attention from the business community. The Indonesian Employers’ Association (APINDO) has spoken out, urging business actors not to panic over the issue.
Chairman of APINDO’s Taxation Committee for Banking and Financial Services, Siddhi Widyaprathama, stressed that examinations of PPS participants are not a new policy. According to him, this step is indeed part of the provisions in Law Number 7 of 2021 on the Harmonisation of Tax Regulations (UU HPP).
“It should be understood that the Voluntary Disclosure Programme (PPS), as regulated in Law Number 7 of 2021 on the Harmonisation of Tax Regulations (UU HPP), differs from the 2016-2017 Tax Amnesty Programme,” Siddhi stated in a written release on Saturday (9/5/2026).
Siddhi explained that PPS participants who receive a lower final Income Tax rate are indeed burdened with several conditions and commitments that must be fulfilled.
These obligations include disclosing assets truthfully and completely, repatriating assets from abroad, and realising investments in Government Securities (SBN) and/or the processing sector of natural resources or renewable energy in Indonesia in accordance with applicable laws and regulations.
Therefore, if the DJP conducts supervision or examination of PPS participants suspected of not meeting these conditions and provisions, it is seen as part of the implementation of rules that have been regulated from the outset in the UU HPP along with its implementing regulations.
APINDO claims to have communicated with the DJP regarding the direction of these examinations. According to Siddhi, the supervision is carried out in a measured manner towards taxpayers indicated not to have carried out PPS obligations in accordance with the rules.
This supervision includes the validity of asset disclosures as well as the realisation of repatriation and investment commitments.
“Reporting on the examination of PPS participants should not be interpreted as a policy change or a general examination step towards all programme participants, but rather as part of the enforcement of provisions on obligations that have been inherent in the PPS scheme from the beginning based on the UU HPP,” Siddhi clarified.
APINDO also advised the business community to remain calm and not to over-interpret the issue, as long as the PPS implementation is carried out correctly, completely, and in accordance with the provisions.
In addition, APINDO requested that the DJP continue to prioritise a persuasive, objective, proportionate approach, and one based on legal certainty in carrying out supervision or examinations.
According to APINDO, this step is important to maintain the business climate, taxpayer trust, and the sustainability of tax reforms.
APINDO also views a constructive relationship between tax authorities and the business community as an important foundation in increasing voluntary compliance and strengthening sustainable state revenues.