A taxation watchdog − Forum Pajak Berkeadilan Indonesia or Indonesian Fair Taxation Forum − has called on newly appointed Finance Minister Purbaya Yudhi Sadewa to urgently implement comprehensive tax reforms that are fair and beneficial to the people. 

The statement comes amid widespread protests across the country, reflecting growing public dissatisfaction with the government’s economic management and fiscal policies, which many see as failing to address social and economic inequalities.

Ah Maftuchan, Executive Director of The PRAKARSA, a member of the Forum, emphasized that tax reform is a crucial step toward achieving true social and fiscal justice.

“The government must immediately stop policies that widen inequalities, such as tax incentives that disproportionately benefit the super-rich and large corporations,” Maftuchan said in a statement on Tuesday, September 9, 2025.

He added that progressive taxes, including wealth taxes and inheritance taxes, should be imposed on the ultra-wealthy, who have long been under-taxed.

Tax evasion and fiscal crisis

One of the critical issues raised in the call for reform is Indonesia’s stagnant tax ratio, which remains at 10-11 percent of GDP, far below the regional average. Meanwhile, government spending has skyrocketed, and public debt is rising rapidly. In the proposed 2026 State Budget (RAPBN), government expenditure is set to reach Rp3,786 trillion (US$230 billion), with debt increasing to Rp781.6 trillion.

"This situation is exacerbated by tax evasion practices, particularly profit shifting by multinational corporations, costing the country billions of rupiah annually in lost revenue," Maftuchan added.

Key reform

The forum outlines several critical measures for Purbaya to immediately take:

1. Complete tax reform for equity and progressivity

• Implement wealth and inheritance taxes on the ultra-wealthy and large corporations, while ending tax amnesty programs and incentives that favor the rich.

2. Fiscal justice between central and regional governments

• Reverse cuts to the Transfer to Regions (TKD) to reduce fiscal disparity between central and local governments.

3. Invest in sustainable development

• Shift the budget allocation from extractive programs to those that support long-term social, economic, and environmental sustainability.

4. Restoring public trust through transparency

• Ensure transparency in tax policy and strengthen public participation in tax planning and evaluation.

Public welfare

The forum also stresses the importance of directing tax revenues towards sectors that have a direct impact on public welfare, including education, healthcare, social protection, and a just energy transition.

"The government must ensure that every rupiah raised from taxes is used to improve the lives of the people, rather than funding populist programs that primarily benefit a select few," Maftuchan concluded.

With this urgent call to action, the forum hopes that Purbaya will steer Indonesia's tax policies toward a more equitable, transparent system that truly benefits the public.