Finance ministry targets illegally operating sectors to boost tax revenue

  • Published on 25/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Renold Rinaldi

  • Editor: Imanuddin Razak

Minister of Finance Sri Mulyani Indrawati said the government is intensifying efforts to expand the country’s tax base by targeting previously untapped sectors, including those operating illegally.

Speaking at a press conference held by the Financial System Stability Committee (KSSK), on Thursday, April 24, 2025, Sri Mulyani emphasized the importance of tax base expansion as a strategy to increase Indonesia’s tax ratio and optimize State revenue.

“Expansion efforts are being made in sectors where tax collection has not been adequate,” she said.

She highlighted several illegally operating sectors as being under closer scrutiny, including illegal fishing, illegal logging, and illegal mining, activities that not only harm the environment, but also contribute to significant revenue loss.

“These efforts involve cooperation with multiple ministries and government agencies, such as those in the fisheries and mining sectors. We are working together to tackle issues like illegal mining, illegal logging, and illegal fishing,” Sri Mulyani cited.

The minister also underscored the use of digital technology to improve the accuracy of economic transaction recording. She said that a more advanced and integrated digital system could enhance compliance and reduce opportunities for illicit economic activities.

The initiative is part of the government’s broader fiscal policy aimed at improving tax collection efficiency and narrowing the gap between potential and actual revenue.

“We will continue to leverage digital technology to better record transactions, which will in turn provide greater certainty in the implementation of tax regulations,” she concluded.

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