Indonesia rules out new tax amnesty as government shifts focus to long-term tax compliance – Indonesia Business Post

Indonesia’s Finance Minister Purbaya Yudhi Sadewa announced on May 11, 2026, that the government will not implement any new tax amnesty programs or Voluntary Disclosure Programs (PPS). During a media briefing in Jakarta, Purbaya confirmed a policy shift intended to prioritize long-term tax compliance over short-term revenue increases through forgiveness schemes.

The decision signals a move away from the repeated use of tax amnesties, which allow individuals and companies to disclose previously unreported income or assets in exchange for lower penalties. Purbaya stated that the government will instead focus on expanding the national tax base and strengthening enforcement mechanisms under existing regulations.

“As long as I am finance minister, I will not implement a tax amnesty.” Purbaya Yudhi Sadewa

Impact on Tax System Credibility

Purbaya argued that the frequent repetition of tax amnesty programs risks undermining the overall credibility of the Indonesian tax system. According to the Finance Minister, these programs can create governance and legal complexities within the Directorate General of Taxes (DJP).

Specific concerns cited by Purbaya include the emergence of corruption allegations and the occurrence of prolonged scrutiny involving tax officials. By moving away from these programs, the ministry aims to reduce these institutional risks and ensure a more sustainable approach to tax administration.

Economic Risks of Frequent Amnesties

The policy shift also addresses warnings from economists regarding taxpayer behavior. Experts have noted that when tax forgiveness programs are offered frequently, it may encourage a "wait-and-see" attitude among taxpayers.

This behavioral pattern occurs when taxpayers intentionally postpone their compliance, anticipating that the government will eventually introduce another forgiveness scheme to lower their penalties. To counter this incentive, the Finance Ministry is shifting its focus toward stricter supervision and the improvement of enforcement protocols.

Shift Toward Sustainable Compliance

Rather than relying on the temporary revenue spikes provided by amnesty programs, the Ministry of Finance plans to implement a more permanent strategy for revenue growth. This approach involves strengthening tax supervision and expanding the tax base to ensure a broader distribution of tax obligations.

Indonesia has utilized several amnesty-style initiatives in recent years to encourage voluntary compliance and increase state revenue. This includes the implementation of the PPS program in 2022, which served as a mechanism for taxpayers to disclose assets.

The current administration’s focus on strengthening the Directorate General of Taxes (DJP) is intended to ensure that existing regulations are enforced more effectively, removing the expectation of future forgiveness and encouraging consistent, voluntary adherence to tax laws.