Purbaya denies using Babinsa to chase taxes, claims revenue grew 24 percent

Minister of Finance Purbaya Yudhi Sadewa. (Teddy Kurniawan VOI)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa said tax revenue this year grew 24 percent. However, he stressed that the government would not raise tax rates or excessively pursue taxpayers.

Purbaya conveyed this at the Presidential Palace Complex, Jakarta, Friday, July 31, when asked about the strategy to pursue the tax revenue target after only two regional offices of the Directorate General of Taxes had achieved the target in 2025.

According to Purbaya, this year's conditions are different from 2025. At that time, tax growth was said to be negative because there was an economic slowdown.

"Now it has grown by 24 percent, it's a different environment," said Purbaya.

He said the current economy is better. Tax officials are also considered to work more seriously in collecting state revenues.

"Now it's more serious and the economy is already quite good, the growth is 24 percent of tax collection, so it should be good this year," he said.

Purbaya also dismissed the government's assumption that it would use Babinsa to help collect taxes.

"No, we don't use Babinsa. So that statement is not accurate," said the Minister of Finance.

According to Purbaya, taxes will still be collected by tax officers. The government will only work more actively with the support of the Coretax system.

Coretax is a tax administration system used to improve tax supervision and services.

Purbaya said Coretax could help close loopholes, tax evasion, and manipulation.

"What is clear is that leaks or tax deficiencies or manipulation can be eliminated as much as possible," he said.

He said the government would follow up on public reports if there were companies suspected of not paying taxes. Purbaya gave examples of steel companies and other companies that were of concern.

However, he emphasized that this step does not mean that the government is raising the tax rate.

"But there will be no increase in tax rates or we will chase after it," said Purbaya.

According to Purbaya, the government is only carrying out tax extension. This means that the government ensures that parties who previously did not pay taxes can pay according to the rules.

"We are expanding to ensure that those who did not pay taxes, pay according to the rules," he said.

Purbaya believes that the number of DJP regional offices that reach this year's target can be better than 2025.

When asked whether at least half of the regional offices could achieve the target, Purbaya replied, "More, more than half of the regional offices."