Jakarta, Indonesia Sentinel — Indonesia’s President-elect Prabowo Subianto is setting his sights on an ambitious goal: recovering nearly $19 billion (approximately IDR 300 trillion) in unpaid taxes as part of his administration’s commitment to close the country’s financial gaps.
This significant amount, which has eluded the country’s tax authority, represents a major area of focus for Prabowo as he prepares to take office.
During a discussion with business leaders at the Indonesian Chamber of Commerce and Industry (Kadin), Hashim Djojohadikusumo, a senior member of Prabowo’s campaign team, highlighted the administration’s plan to seal these tax loopholes.
Hashim, who is also Prabowo’s brother, stated that the government has already identified a list of entities responsible for the tax shortfall.
“There’s a staggering IDR 300 trillion that remains unpaid,” Hashim explained. “We now have the data in hand, and Prabowo is committed to addressing this issue immediately.”
While Hashim refrained from naming specific individuals or companies responsible for the unpaid taxes, he did emphasize that the list does not include Kadin members. “I haven’t seen any of our colleagues from Kadin on the list, but I’ll check again. If necessary, we’ll issue a friendly reminder—please pay up,” he added.
No Tax Rate Increases
Prabowo’s administration is focusing on increasing tax compliance rather than raising tax rates. This approach aims to reassure business leaders concerned about potential tax hikes under the new administration.
“Let me be clear, we are not increasing tax rates,” Hashim stated. “The current rate of 22% will remain, and we’re even looking to lower it to 20%—closer to the rates of Singapore and Hong Kong—within the near future.”
By keeping tax rates stable, Prabowo’s team believes they can foster a business-friendly environment while simultaneously closing financial gaps through stricter enforcement. The focus is on fair compliance, with the administration pledging to ensure that no businesses can evade their tax obligations under the new leadership.
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Striking a Balance
Hashim was quick to note that while the government intends to avoid tax hikes, the new administration will no longer tolerate businesses or individuals who shirk their tax responsibilities. “There’s no room for tax dodging in the next five years,” he said, emphasizing the importance of closing these gaps without imposing additional financial burdens on businesses.
As Prabowo prepares to take office, his administration’s focus on recovering unpaid taxes without raising rates is seen as a key step toward boosting Indonesia’s economic resilience.
(Becky)
