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Indonesia’s Finance Minister Pledges Bonuses for Tax, Customs Officials

Indonesia’s Finance Minister Pledges Bonuses for Tax, Customs Officials

Jakarta, March 11, 2026 – The Europe Today: Indonesia’s Finance Minister Purbaya Yudhi Sadewa has promised bonuses for tax and customs officials if they succeed in raising the country’s tax-to-GDP ratio to around 11 percent by 2027, as part of broader efforts to strengthen state revenue.

Speaking during the inauguration of echelon II officials in Jakarta on Tuesday, Sadewa said he would request President Prabowo Subianto to approve bonuses for officials if the targeted increase in tax revenue is achieved.

“If the income rises with the tax ratio, nearing 11 percent next year, I will ask Mr. President to grant bonuses for you all,” he told ministry aides.

The minister urged officials from the Directorate General of Taxes (Indonesia) and the Directorate General of Customs and Excise (Indonesia) to work with dedication and integrity to enhance state revenue collection.

Sadewa said the government had identified raising the tax-to-GDP ratio as a key initiative to expand fiscal space, enabling increased government spending aimed at supporting economic growth.

He also highlighted the ministry’s push for service digitalization, particularly through the implementation of the Coretax tax administration system, which he said has contributed to a 30 percent increase in tax revenue.

According to the minister, digitalization efforts will also extend to customs operations, including improved monitoring systems and stronger communication with the business community to minimize potential revenue leakages.

Sadewa stressed that human resource quality remains essential to the effectiveness of any system.

“A system, regardless of how advanced it is, will eventually collapse if it is managed by personnel with unreliable integrity,” he said.

He also noted that the performance of tax, customs and excise authorities is constantly under public scrutiny, adding that officials are often blamed when state revenue trends fall short of expectations.

The minister concluded by announcing plans to strengthen oversight of work units, enhance internal coordination and conduct direct inspections after the Eid al-Fitr holiday to ensure the ministry remains on track to achieve its revenue targets.