TEMPO.CO, Jakarta – The Civil Society Coalition for Security Sector Reform has criticized the Indonesian government's policy allowing the Indonesian National Armed Forces (TNI) to become involved in monitoring taxpayer compliance, warning that the move could blur the line between civilian administration and military authority.
The policy is outlined in Circular Letter of the Directorate General of Taxes Number SE-8/PJ/2026 on Guidelines for Taxpayer Compliance Supervision, which includes the development of taxpayer information networks involving Village Supervisory Non-Commissioned Officers, known as Babinsa.
"If the government wants to increase tax compliance, the solution is not to expand the involvement of security forces, but to improve the quality of tax services," Julius Ibrani, chairman of the Indonesia Risk Centre, said in an official statement on Tuesday, July 21, 2026.
According to Julius, involving Babinsa in tax supervision could create pressure on vulnerable communities, including small business owners, farmers, fishermen, and informal workers, particularly in rural areas.
"The presence of Babinsa in tax monitoring represents a form of political intimidation by the state toward vulnerable groups," he said.
Concerns Over Civil-Military Boundaries
Julius argued that the policy contradicts Indonesia's military reform agenda, the principle of civilian supremacy, and efforts to build public trust in tax administration.
He emphasized that taxpayer compliance should be encouraged through trust, transparency, and fair treatment rather than fear or coercion.
"The state should not use tax compliance as an entry point to normalize military involvement in everyday civilian affairs," Julius said.
The coalition also warned that expanding the military's role into civilian administrative functions could undermine the separation between defense duties and government services.
Coalition Issues Five Demands
The Civil Society Coalition for Security Sector Reform, which includes organizations such as Imparsial, the Commission for Missing Persons and Victims of Violence (KontraS), the Indonesian Legal Aid Foundation (YLBHI), Centra Initiative, Amnesty International Indonesia, DeJure, and Raksha Initiative, has issued five demands.
First, the coalition urged the Directorate General of Taxes and the Ministry of Finance to immediately revoke provisions involving Babinsa in building taxpayer compliance monitoring networks.
Second, it called on the TNI commander to ensure that all military personnel, including Babinsa, are not involved in taxpayer monitoring, data collection, tax collection, or other activities related to tax compliance.
Third, the coalition asked the government and the House of Representatives (DPR) to conduct a comprehensive review of tax policies involving security forces to ensure compliance with the principles of the rule of law, civilian supremacy, human rights protection, and taxpayer data confidentiality.
Fourth, it urged the Directorate General of Taxes to strengthen a legitimate, transparent, proportional, and accountable data-based supervision system, ensuring that field activities are carried out only by authorized officials with safeguards for citizens' rights.
Finally, the coalition called on the National Human Rights Commission (Komnas HAM), the Ombudsman, and other oversight institutions to monitor potential maladministration, intimidation, and rights violations arising from the policy.
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