Interior Minister Asks BI to Aid Regional Tax Digitalisation

Indonesia’s Interior Minister Tito Karnavian asked Bank Indonesia to assist the acceleration of regional tax digitalisation on 1 November 2025 in Jakarta. The request was made during a meeting with Bank Indonesia Governor Perry Warjiyo.

Karnavian said regional tax revenue suffers leakage because there is no system to monitor taxpayer compliance, especially for hotel and restaurant goods and services tax. Some operators use a two‑book scheme to underreport turnover, resulting in lower payments to the Regional Revenue Agency (Bapenda).

Digitalisation is expected to close these gaps, boost the region’s own-source revenue (PAD) without adding new tax objects or raising rates, and simplify payments for taxpayers. Bank Indonesia could link transaction data through a QRIS‑like platform, creating a national standard that benefits regions, taxpayers and the central bank.