BPK Urges Government to Align DTP Incentives with IMF FTC

The Audit Board (BPK) on Monday, 10 November 2025, concluded that DTP incentives are no longer classified as tax spending following the implementation of Ministerial Regulation No. 122/2024. The finding appears in the 2024 Fiscal Transparency Review Report.

Regulation 122/2024 defines tax spending as tax revenue not received by the government due to tax facilities, which excludes DTP incentives from the definition. BPK cautioned that the policy must remain consistent with the IMF Fiscal Transparency Code (FTC) 2019, which treats tax spending as a key element of fiscal reporting.

Because DTP incentives are excluded from tax spending, the government must establish control mechanisms to stay compliant with FTC requirements. This step is essential for preserving Indonesia’s fiscal credibility with investors and international institutions.