Government Strengthens International Tax Cooperation Through ARTC Scheme

Tax (Photo: dock. Unsplash)

JAKARTA - The government continues to improve international collaboration in the field of taxation through the Assistance in Recovery of Tax Claims (ARTC) scheme.

Through this policy, Indonesia can collect cross-border tax obligations reciprocally, so that taxpayers can no longer avoid responsibility only by moving to other countries.

The policy is stated in Book II of the Financial Note and Draft of the 2026 State Revenue and Expenditure Budget (RAPBN), as quoted on Tuesday, August 19.

The document states that Indonesia already has an ARTC agreement with 81 countries and is currently drafting further cooperation with Japan and Korea.

Meanwhile, this step is believed to strengthen state revenues and increase the level of global tax compliance.

Policies in the tax sector will continue to be strengthened in order to strengthen the function of state revenue sources, redistribution of income, regularity, and tools to maintain stability and competitiveness.

The government continues to be committed to strengthening a tax system that is fair, transparent, and in line with global dynamics.

For information, the Government has set a state revenue target in 2026 of IDR 3,147.7 trillion, an increase of 9.84 percent from the 2025 revenue outlook of IDR 3,527.5 trillion.

The state revenue in 2026 comes from tax revenues of Rp2,692.0 trillion, an increase of 12.8 percent on an annual basis or year on year (yoy) when compared to last year's outlook of Rp2,387.3 trillion.

Then, the 2026 tax revenue came from tax revenues of Rp2,357.7 trillion, an increase of 13.5 percent from the 2025 tax revenue outlook of Rp2,076.9 trillion.

Meanwhile, other sources of income, namely customs and excise revenues, are targeted at IDR 334.3 trillion, an increase of 7.7 percent from the outlook for customs and excise revenues in 2025 of IDR 310.4 trillion.

Furthermore, the revenue target from Non-Tax State Revenue (PNBP) 2026 is IDR 455 trillion, down 4.7 percent from the PNBP outlook in 2025 of IDR 477.2 trillion.