In an effort to boost state revenue, Indonesia’s Directorate General of Taxes (DGT) and the National Police’s Special Task Force for State Revenue Optimization have launched a joint initiative to clamp down on the country’s vast “shadow economy.” This term refers to unrecorded or illegal economic activities that evade taxation but generate significant value.
Rosmauli, Director of Outreach, Services, and Public Relations at the DGT, said the collaboration will focus on illegal operations in strategic sectors—particularly those involving natural resources such as illegal fishing, illegal mining, and illegal logging.
“The collaboration between DGT and the National Police’s Special Task Force prioritizes state revenue from shadow economy activities through enhanced synergy, data sharing, and law enforcement against economic crimes that harm state income,” Rosmauli stated in an official release on Wednesday, June 18, as quoted by Kumparan.
The move underscores a renewed government focus on optimizing tax collection from sectors that have long remained outside the formal tax net. According to Rosmauli, illegal economic activities not only damage the environment and local communities but also result in major revenue losses for the country.
Strategic Focus on Illegal Resource-Based Sectors
To address this issue, the tax authority and the police task force have agreed to intensify monitoring efforts and enhance cooperation, especially through better integration of data and information.
“DGT and the National Police’s Special Task Force team have discussed the strategic sectors that will become the focus of tax optimization efforts,” Rosmauli added.
The police-led State Revenue Optimization consists of former members of the Corruption Eradication Commission, including its former senior investigator, Novel Baswedan, who serves as deputy chief of the task force. The team is headed by Herry Muryanto.
Finance Minister Sri Mulyani Indrawati welcomed the initiative, clarifying that the special task force is not new but rather a continuation of earlier efforts to support government revenue.
“This is not something new. The Special Task Force from the National Police was actually formed several years ago, and I attended its initial launch,” Sri Mulyani said.
She emphasized that a strong state budget depends on robust revenue collection, and the task force could play a critical role in helping to achieve that.
“It’s definitely a positive initiative. A healthy state budget requires strong and optimized revenue,” she remarked.
Meanwhile, Director General of Taxes Bimo Wijayanto also confirmed recent discussions with the full Special Task Force for State Revenue Optimization team—except for Novel Baswedan, who was absent—to align efforts in both prevention and enforcement.
“We are committed to synergy, particularly in securing state revenue through both preventive and corrective measures,” Bimo stated.
The crackdown on shadow economy activities is part of the broader strategy to enhance fiscal resilience and reduce reliance on traditional tax bases. By targeting hidden and illegal economic operations, the government aims to widen its tax net and ensure that all sectors contribute fairly to national development.
This multi-agency approach reflects Indonesia’s growing determination to improve tax compliance and tackle illicit economic activities that threaten long-term revenue sustainability.
Source: Antara, Kumparan, Metrotv News
Photo Credit: Shutterstock
