Indonesia's Tax Authority Faces Trillions in Uncollected Tax Debt

An audit by Indonesia's Supreme Audit Agency (BPK) found that the Directorate General of Taxes (DJP) has failed to actively pursue tax collections totaling roughly 5.84 trillion rupiah. The review identified 1,534 tax assessments worth 1.24 trillion rupiah that have expired without any collection action, and 4,740 overdue "quality‑bad" tax debts older than three years amounting to 5.83 trillion rupiah.

In a separate enforcement effort, the DJP regional office in Bali blocked the bank accounts and deactivated the electronic tax certificates of 295 taxpayers who together owe about 76.2 billion rupiah. The measures, taken as part of a synchronized collection campaign, prevent these taxpayers from issuing electronic tax invoices until the outstanding amounts and associated penalties are settled.