Prioritize Strengthening the Tax System and Oversight, DJP Submits Indicative Payment of IDR 5.4 Trillion for 2027

JAKARTA - The Directorate General of Taxes (DJP) of the Ministry of Finance has proposed an indicative ceiling for the 2027 fiscal year of IDR 5.4 trillion to support state revenue security and accelerate tax reform.

Director General of Taxes Bimo Wijayanto explained that the budget would be used to strengthen various main functions of the DJP, ranging from expanding the tax base, improving tax services, supervision, to law enforcement.

According to Bimo, the proposed indicative ceiling for 2027 consists of a state revenue management program budget of IDR 867.89 billion and a management support program worth IDR 4.53 trillion.

"The state revenue management program is an appropriation that will be used to carry out technical activities in order to secure tax revenue," Bimo said in a working meeting with Commission XI of the Indonesian House of Representatives, Monday, June 15.

Meanwhile, the management support program is used to support the operational units, including the needs for employee spending, goods, capital, to the development of information technology.

However, the proposed budget for 2027 was recorded as slightly lower than the 2026 DJP budget allocation after efficiency, which reached around IDR 5.42 trillion.

Bimo revealed that in the last five years, the trend of the DJP budget has continued to decline, while the state revenue target has continued to increase year by year.

Of the total proposed ceiling for 2027, approximately 89.2 percent or Rp4.81 trillion will be allocated to support the core functions of the DJP which involve approximately 37,470 employees.

Meanwhile, the remaining Rp583 billion is allocated for supporting functions with a number of employees of around 5,965 people.

Furthermore, Bimo detailed that the core function budget would be directed to five main focuses, namely strengthening data and tax information systems of Rp679 billion, expanding the tax base of Rp919 billion, improving public services and trust of Rp665 billion, supervision and enforcement of law of Rp1.97 trillion, and tax policy of Rp578 billion.

According to him, the budget support is important to strengthen the strategy of increasing the tax ratio through data and technology optimization, expanding the tax base, risk-based supervision, and strengthening law enforcement while maintaining the investment climate and economic growth.

"Please agree to the leadership and the members of Commission XI of the DPR RI to approve the proposed work plan and indicative ceiling of the DJP for the 2027 fiscal year of Rp. 5,402,056,236," he said.