Tax Office Blocks 571 Accounts, Pursues IDR 70.2 Billion in Arrears
The Regional Office of the Directorate General of Taxes (Kanwil DJP) for West Sumatra and Jambi has blocked 571 accounts belonging to 50 tax defaulters, with total arrears reaching IDR 70.2 billion.
“Account blocking is the initial stage of tax collection using enforcement measures. This is law enforcement. Essentially, it is a service – a service to compliant taxpayers. So, law enforcement against non-compliant taxpayers is our service to those who have been compliant,” said Head of Kanwil DJP West Sumatra and Jambi, Tarmizi, in a press release on Friday (12/6/2026).
The blocking, carried out on 3-4 June 2026, involved all Tax Bailiffs (JSPN) within the Tax Service Offices (KPP) across West Sumatra and Jambi, in collaboration with 21 financial services institutions (LJK) and banks.
Tarmizi stated that before resorting to enforcement, the relevant KPP had undertaken layered persuasive approaches: starting with appeals, issuing warning letters, and delivering forced letters. The blocking was only executed after taxpayers or responsible parties showed no good faith in settling their tax debts within the legally stipulated deadline.
This measure is based on a strong legal foundation, namely Law Number 19 of 1997 on Tax Collection with Forced Letters as amended by Law Number 14 of 2002, and Minister of Finance Regulation Number 61 of 2023 on Procedures for Collecting Outstanding Tax Amounts.
Tarmizi aims to provide a sense of justice for the majority of taxpayers who have voluntarily fulfilled their obligations, while simultaneously creating a deterrent effect for uncooperative parties.
If taxpayers still fail to settle their obligations after the blocking, law enforcement procedures will be escalated. The Regional Office is authorised to seize account assets, and the balance in the seized accounts will subsequently be forcibly transferred to the State Treasury as settlement of the tax debt and its collection costs.
Nevertheless, the national taxation system still provides accommodative resolution options. The account block status can be lifted immediately if the taxpayer or responsible party:
settles the entire tax debt and collection costs;
provides a guarantee of goods equivalent to the value of the tax debt; or
submits a request for instalment payment or deferral of tax payment that has been officially approved by the Head of the relevant KPP.
Tarmizi urged all taxpayers with outstanding arrears to proactively coordinate with their registered KPP. Cooperative resolution will prevent taxpayers from facing more severe legal actions, including asset seizure, sale of seized assets through auction, travel bans, and even detention (gijzeling).