Tax Revenues in Indonesia Declined. What Should Businesses Prepare For?
The Indonesian economy is slowing down, as stated directly by the Ministry of Finance. By the end of Q4 2025, the annual tax plan was only fulfilled by 66.6%. The state is forced to urgently look for additional sources to replenish the treasury and plans to do so with the help of entrepreneurs. The task of the tax service now is to find the most understandable and easily provable underpayments. The fastest way to recognize them is by discrepancies in data.
What has changed and who is at risk?
Previously, the tax service (DJP) worked manually, and the process was slowed down by lengthy correspondences that hindered quickly matching declarations with counterpart data. Now, the control has become fully digital. The system allows faster matching of data from different sources and identifying discrepancies. That is, if an entrepreneur's reports do not match what is already uploaded, DJP has grounds to conduct an audit.
As a result, a new format of targeted audits on “data konkret” emerges, prescribed in PMK 15/2025 regulations. This is not a general review of the entire business but targeted work with specific figures that are already in the tax system. The main thing here is timing. The provision of necessary documents may be allowed within 10 working days, after which the audit results are immediately documented. If earlier companies could take months to gather documents, amend and clarify, now the scenario changes dramatically - everything needs to be provided immediately. If something cannot be found or discrepancies explained, be prepared to pay.
Delaying is now the most expensive strategy. Especially since penalties for delays are no longer fixed. After the adoption of laws UU Cipta Kerja and UU HPP, the percentage has become floating, set by the Ministry of Finance monthly and depends on the Central Bank rate. In December 2025, penalties reached 2.18% per month. Hence the conclusion: the longer it takes to make corrections, the higher the final cost of the error becomes.
Who can count on state support?
At the same time, the state not only strengthens control but also provides relief. According to PMK 72/2025, the PPh 21 DTP program was expanded for the period of October–December 2025, including for tourism. PPh 21 is an employee income tax usually withheld by the employer from salary. DTP (Ditanggung Pemerintah) means that the payment of this tax for the specified period is taken over by the state if the company and employees meet the program conditions. For businesses with official staff - hotels, villas, restaurants, cafes, tour operators - this is real support because employees receive more, and the burden on the employer decreases.
But there is also an important nuance. To receive the support, a correct business activity code (KLU) and employees matching the declared criteria are needed. Therefore, this benefit should be used very carefully. Mistakes can become a reason for a tax audit.
What to do in practice?
What can be done right now? Start by going through the base and closing obvious risks. Check:
whether turnovers and expenses match bank statements and primary documents;
whether VAT (PPN) is correctly reflected: do your e-Faktur indeed match the submitted declarations;
whether documents for benefits and incentives (if applicable) are correctly drawn up;
whether the "evidence folder" is ready in case of short response times: contracts, invoices, acts, payroll documents, correspondence, and technical specifications for services.
Thus, you will be prepared in advance with answers to the most frequent questions of the tax authorities, saving yourself nerves and money.
It is important to understand that it is not about starting to check everyone indiscriminately right now. The risk is elsewhere: if there are inconsistencies in the data, DJP goes exactly where additional funds can be quickly obtained and the income plan closed.
For business owners in Indonesia (PT, PT PMA, CV), especially those related to tourism, it is more important than ever to work with proven tax specialists who truly understand Coretax, SPT, e-Faktur, and the logic of audits on “data konkret”.
Legal Indonesia specialists can:
verify reports, documents, and show where there are tax risks;
deal with benefits and incentives and help apply them correctly;
set up reporting work so as not to fall under quick inspections and not pay unnecessary percentages and fines.
