The Indonesian tax authority has dismissed 26 officials for misconduct in a sweeping crackdown on corruption inside the Directorate General of Taxes (DJP). Finance Minister Purbaya Yudhi Sadewa confirmed the dismissals and emphasized the government’s firm stance on protecting public trust in the country’s taxation system.
Directorate General of Taxes Takes Firm Action
Director General of Taxes Bimo Wijayanto announced that since May 2025, he has dismissed 26 employees for serious violations. He also revealed that another 13 officials are currently facing the dismissal process.
“We regret to report that we have had to dismiss 26 employees, and today another 13 names have been added to my desk (for dismissal),” Bimo said at the launch of the Taxpayer Charter in Yogyakarta. He stressed that the action was taken without favoritism to ensure fairness and maintain the integrity of the institution.
Tax Officials Dismissed for Accepting Bribes
Minister Purbaya explained the reasons behind the dismissals. He said most of the employees were caught accepting money outside their official duties, an act considered a major violation.
“Yes, they were fired. So maybe he (the Director General of Taxes) found people who took money, something that can no longer be forgiven. They were fired, and that’s it,” Purbaya stated in Jakarta. He underlined that such misconduct warranted dishonorable discharge, also known as PTDH, the strictest form of penalty for public servants.
Tax Fraud Crackdown Strengthens Public Trust
Director General Bimo highlighted that this crackdown is designed to protect the credibility of the DJP. “Even if there’s fraud for only one hundred rupiah by any of our members, I will dismiss them! My phone is open for whistleblowers from the public, and I guarantee their safety,” he declared.
According to him, public trust forms the foundation for voluntary tax compliance. Without trust, he warned, the state risks losing efficiency in revenue collection. This firm stance underscores the DJP’s commitment to clean governance.
Finance Ministry Pushes Coretax System Upgrade
Beyond personnel changes, the Ministry of Finance is also working to upgrade Indonesia’s advanced tax administration system, known as coretax. Minister Purbaya announced that the project is expected to be completed by October 2025. He addressed speculation about foreign involvement, clarifying that the expert handling the upgrade is Indonesian and comes from outside the Ministry of Finance.
“Coretax might be finished in one month. People said it was impossible, so I brought in an expert. The expert isn’t from overseas, but from outside (the Ministry of) Finance. He’s very skilled, and he said it can be done this month,” Purbaya explained. He added that even if there is a slight delay, the system already looks close to completion.
Strengthening Integrity in Indonesia’s Tax Authority
The dismissal of 26 tax officials reflects a larger reform effort to strengthen governance within Indonesia’s taxation system. By enforcing strict disciplinary action and improving administrative infrastructure, the government aims to restore public confidence in the DJP.
These measures also align with broader anti-corruption initiatives designed to improve the investment climate and ensure tax compliance across the country. For both businesses and individuals, trust in the tax authority is essential for a fair and transparent system.
Public Trust in Taxation Must Be Protected
The Indonesian tax authority’s decision to dismiss 26 officials, with more under review, sends a clear message: misconduct will not be tolerated. Minister Purbaya and Director General Bimo have both emphasized that this is not the time for tax officials to take risks with fraud or corruption.
Protecting public trust remains at the heart of the reform agenda. Through firm leadership and systemic improvements, the government seeks to secure integrity, enhance compliance, and strengthen the state’s ability to collect revenue fairly and effectively.
Source: cnbcindonesia.com, cnnindonesia.com
Image: (B-Universe Photo/Joanito De Saojoao)
