Closing the Shadow Economy Gap: Pro‑Investment Tax Enforcement

Imagine a downtown mall filled with cheap imported clothing that delights shoppers but risks losing trillions of rupiah in tax revenue. Data from Bank Mandiri 2024 shows a gap of up to Rp4.2 trillion between Indonesia’s import records and China’s export figures. The International Trade Centre also reported a discrepancy of more than US$5 billion in garment trade, suggesting large‑scale smuggling.

The Directorate General of Taxes (DJP) has responded with preliminary evidence checks and criminal investigations, adding over Rp133 billion to the state treasury from a single correction case. Its “follow the money” strategy partners with PPATK, banks and international tax authorities to trace illegal fund flows. This approach not only boosts short‑term revenue but also expands the long‑term tax base.

Despite these gains, challenges remain, including limited human resources, weak inter‑agency coordination and gaps in applying existing tax and anti‑money‑laundering laws. DJP is urged to adopt a pro‑investment stance, offering voluntary disclosure programs so compliant taxpayers are not immediately penalised. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/komunitas/lomba/1814692/kunci-tutup-celah-shadow-economy-penegakan-hukum-pajak-pro-investasi).