"Tax reforms, including the core tax implementation, become a strong backbone for the government to achieve the state revenue target," the minister stated at a meeting with the House of Representatives in Jakarta on Tuesday.
This statement was conveyed in response to a suggestion from a DPR member regarding the importance of pushing state revenue optimization, both tax and non-tax revenues, by still maintaining a conducive business and investment climate.
Indrawati explained that efforts to increase the tax ratio are carried out by continuing to implement tax reforms.
One of the efforts is the implementation of the Law on Harmonization of Tax Regulations (UU HPP) and improvements to the organization, governance, and infrastructure in the tax sector.
"Intensification and extensification, as well as technology utilization in the tax system, are expected to strengthen revenue," she elaborated.
Moreover, synergy and joint programs, harmonization of tax policies, as well as improvement to anticipate international policy directions will be continued.
Furthermore, the optimization of non-tax revenue is carried out through the utilization of natural resources and the enhancement of policies for the optimization of dividends and performance improvement of state-owned enterprises.
"Improvement of service innovation and non-tax revenue governance, such as the development of the Coal Management Information System (Simbara) for natural resource commodities, will be continued by bolstering synergy between government institutions and ICT (information and communication technology) utilization," she remarked.
Earlier, on Wednesday, July 31, Minister Indrawati stated that the implementation of CTAS could increase the tax ratio to up to 1.5 percent of the GDP.
CTAS provides benefits, such as automation and digitalization of tax administration services, improving risk-based taxpayer compliance data analysis, creating transparency of taxpayer accounts, and encouraging prudent and accountable financial reports of the Directorate General of Taxes of the Ministry of Finance.
In the 2025 draft state budget, state revenue is targeted at Rp2,996.9 trillion (around US$193.23 billion), with tax revenue projected at Rp2,490.9 trillion (around US$160.53 billion) and non-tax revenue estimated at Rp505.4 trillion (around US$32.54 billion).
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Translator: Imamatul Silfia, Raka Adji
Editor: Azis Kurmala
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