Why Does Indonesia's New Finance Minister Oppose Repeated Tax Amnesty?

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September 19, 2025 | 07:15 pm

TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa has voiced his opposition to the repeated implementation of tax amnesty programs, warning that it could undermine taxpayer compliance.

The former Chairperson of the Deposit Insurance Corporation (LPS) said granting amnesty too often risks sending the wrong message.

“If amnesty is given repeatedly, it signals to taxpayers that violating the rules is acceptable because another amnesty will eventually come,” he said.

Indonesia has implemented tax amnesty programs twice. The first was carried out in 2016–2017, followed by the Voluntary Disclosure Program, often referred to as the second round of tax amnesty, in 2022.

In November 2024, the House of Representatives (DPR) approved the Tax Amnesty Bill as part of the 2025 National Legislative Program (Prolegnas) priorities.

Purbaya argued that new amnesty programs are unnecessary to boost state revenue. “In my view, it’s enough to optimize existing regulations and minimize tax evasion. That should be sufficient,” he said.

His current priority, he explained, is to strengthen economic growth so that government revenues increase even if the tax ratio remains unchanged.

“If tax amnesty is applied every few years, people will start evading taxes and simply wait for the next amnesty. That’s not a good signal, neither for taxpayers, nor for me as an economist, nor as a minister,” Purbaya stressed.

Meanwhile, the DPR and the government have agreed on 52 draft laws for inclusion in the revised 2025 Prolegnas priorities. The Tax Amnesty Bill is among them, and it is also listed in the 2025–2029 Prolegnas.

“We have agreed on the 2025 Prolegnas priorities, which will be formally approved in a second-level discussion tomorrow. These priorities will be evaluated again in December 2025 or January 2026,” said Deputy Minister of Law Edward Omar Sharif Hiariej, also known as Eddy Hiariej, during a working meeting with the DPR’s Legislative Body on Thursday, September 18, 2025, at the Parliament Complex in Senayan, Jakarta.

Ervana Trikarinaputri contributed to the writing of this article.

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