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Indonesia's Tax Shortfall Sparks Controversial Evasion Crackdown

12/22/2025

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Summary

Story summary

Indonesia faces a revenue shortfall as the tax ratio stands at about 10% of GDP in 2024, with the budget deficit near 3% of GDP.
Finance Minister Purbaya Yudhi Sadewa announced plans to pursue 200 tax-evasion cases totaling around 60 trillion rupiah (S$4.6 billion).
Experts warn that aggressive enforcement may erode trust in tax authorities and deter investment, even as tax collection has fallen short of targets.

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Story summary

Indonesia faces a revenue shortfall as the tax ratio stands at about 10% of GDP in 2024, with the budget deficit near 3% of GDP.
Finance Minister Purbaya Yudhi Sadewa announced plans to pursue 200 tax-evasion cases totaling around 60 trillion rupiah (S$4.6 billion).
Experts warn that aggressive enforcement may erode trust in tax authorities and deter investment, even as tax collection has fallen short of targets.