BPK Audit Finds DJP Tax Collection System Not Fully Effective

The Supreme Audit Agency (BPK) noted in its 2024 LKPP audit report that the Directorate General of Taxes (DJP) has not carried out active collection for 156 tax assessments totaling IDR 323.85 billion that are past due. Under the tax law, DJP may initiate active collection if the taxpayer does not pay within one month after the final tax decision becomes binding.

The VAT Gross Collection ratio fell to 45.2 % in Q3 2023, the lowest level since the COVID‑19 pandemic began in 2020, indicating a weakening of consumption tax recovery. Tax buoyancy for January‑September 2025 was –0.88, meaning tax revenue growth lagged behind GDP growth.

The audit highlights gaps in DJP’s collection mechanisms that could affect state revenue. The government has issued Regulation 44/2025 to strengthen service termination rules for non‑tax revenue collection, and the Indonesian Tax Consultants Association is urging the passage of a Tax Consultant Law to support the tax system.