Finance Ministry Prepares IT‑Based TCF to Reach Zero

Indonesia’s Finance Ministry is developing an IT‑based Tax Control Framework (TCF). The project brings together academics, tax practitioners and consultants to accelerate understanding and adoption among businesses. TCF serves as an internal risk‑control structure for taxpayers over tax calculation, payment and reporting.

The framework aims to lower compliance costs while raising compliance levels, including raising awareness at the board‑level. The finance minister can request the Ministry of Communication and Digital to block digital access for foreign e‑commerce platforms that fail to meet tax obligations. These measures will be codified in a forthcoming Finance Ministry Regulation.

The TCF rollout complements other tax policies such as super tax deductions for research and development and investigations into misuse of the People’s Credit (KUR) scheme. The government stresses that tax revenues must fund public services. By strengthening tax administration, the TCF is expected to reduce fiscal leakage.