Tax Certainty Framework: Indonesia’s Strategic Investment Pull

The author proposes an Integrated Tax Certainty Framework (ITCF) for Indonesia. ITCF includes Advance Tax Agreements and a digital dispute‑resolution process capped at 90 days. The proposal was published in a DDTCNews writing contest on 21 October 2025.

The OECD Tax Certainty Report 2022 found over 70 % of global investors rate tax certainty as a primary investment factor, and the World Bank 2020 links tax‑regulation transparency to national competitiveness. Indonesia’s formal compliance ratio rose from 72 % in 2017 to 84 % in 2022, aided by e‑filing, e‑withholding and a core tax system. IMF research shows countries with high legal certainty achieve tax compliance 10–15 % better than those with ambiguous rules.

Adopting ITCF could cut tax disputes, lower compliance costs, and boost long‑term investor confidence, thereby strengthening fiscal revenue without relying on large tax holidays. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/komunitas/lomba/1814594/tax-certainty-framework-langkah-strategis-tarik-investasi).