The Indonesian Directorate General of Taxes (DJP), under the Ministry of Finance, has reported the filing of 9.75 million tax declarations as of March 29, 2026. This announcement is part of the continuous efforts to strengthen tax compliance in the country, with 17.1 million accounts activated on the Coretax system, which is considered a part of recent tax reforms.
In an official statement, Ingi Diana Rismawanti, the Director of Outreach, Services, and Public Relations at DJP, indicated that the total number of tax declarations includes 8.56 million from working individuals, 988,464 from non-working individuals, as well as 198,788 from companies filing in the local currency, and 140 companies filing in US dollars.
Details of the Tax Declarations
The tax declarations were categorized among different taxpayer groups, with 1,713 companies filing in local currency and 21 companies in US dollars. The report also noted that the government has decided to extend the deadline for individual tax declarations until April 30, 2026, instead of the original deadline of March 31, 2026.
This extension is part of the government's efforts to alleviate the burden on taxpayers, as administrative penalties related to late submissions have been waived until the end of April. This includes the non-imposition of any fines or interest on those who delay their submissions.
Background & Context
The Indonesian government is striving to improve the tax system and enhance tax compliance through the use of modern technology. The Coretax system is part of these efforts, aiming to facilitate the tax declaration process and simplify procedures. Over the years, Indonesia has faced significant challenges in tax collection, prompting the government to implement comprehensive reforms in this sector.
Historically, Indonesia has struggled with low tax compliance rates, as many individuals and companies have avoided paying taxes. However, technological improvements and changes in tax laws have contributed to an increase in the number of declarations submitted.
Impact & Consequences
These figures are a positive indicator of improved tax awareness among citizens and businesses in Indonesia. With the increasing number of declarations, it is expected that this will lead to higher government revenues, enabling the government to finance development projects and improve public services.
Furthermore, the cancellation of administrative penalties may encourage more individuals to submit their declarations on time, thus enhancing the culture of tax compliance in the country. This trend could help improve the government's image in the international community and boost investor confidence in the Indonesian economy.
Regional Significance
Indonesia's experience in improving its tax system serves as a model for many Arab countries facing similar challenges in tax collection. Arab nations can benefit from the lessons learned from Indonesia in utilizing technology to enhance tax compliance and streamline procedures.
Moreover, improving the tax system in Indonesia could open new avenues for economic cooperation between Indonesia and Arab countries, particularly in the fields of investment and trade.