DEN Chairman: Digitalization Can Boost Tax Ratio to 13 Percent

JAKARTA - Chairman of the National Economic Council Luhut Binsar Pandjaitan assessed that government digitization could gradually increase Indonesia's tax ratio.

The tax ratio or tax ratio is the ratio of tax revenue to gross domestic product (GDP).

According to Luhut, data integration through GovTech will make economic activities easier to monitor, including MSMEs.

"Our tax ratio will rise from 9 percent now to maybe 12 or 13 percent over time," said Luhut at the Presidential Palace Complex, Jakarta, Tuesday (9/6).

Luhut said the system would be connected to the National Single Window at the Ministry of Finance. With more complete data, state revenues are expected to increase.

He also opened the possibility of tax reductions in the future if the revenue base is stronger.