Indonesia strengthens its commitment to global tax transparency by joining the OECD’s new initiative on property taxation data. The country will begin exchanging property information automatically with 25 other jurisdictions starting in 2029 or 2030. This move aligns Indonesia with a major international effort to improve oversight of cross‑border property ownership and income.
Indonesia Joins OECD’s Global Transparency Push
Twenty‑six jurisdictions have agreed to implement the Multilateral Competent Authority Agreement on the Exchange of Readily Available Information on Immovable Property (IPI MCAA). The OECD developed this framework to expand international tax cooperation beyond financial assets. Indonesia joined countries such as Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, South Korea, Malta, New Zealand, Norway, South Africa, Spain, Sweden, the United Kingdom, and Gibraltar.
The joint statement from the 26 jurisdictions highlighted the shared objective of improving global tax administration. They noted, “Ownership and transactions of real estate often have a cross‑jurisdictional element. We therefore recognise the need for a mechanism to ensure that tax authorities have access to relevant information on properties owned overseas, and the income derived from such properties.” This collaboration reinforces Indonesia’s commitment to transparency and strengthens its position in international tax governance.
What the Property Taxation Data Exchange Covers
The IPI MCAA will enable participating jurisdictions to exchange detailed property information automatically. The data includes ownership records, property values, transaction histories, and rental income. These elements help tax authorities assess offshore holdings more accurately and identify discrepancies between declared and actual assets.
The jurisdictions emphasized the agreement’s importance, stating, “The widespread adoption of the IPI MCAA is a crucial step towards ensuring tax transparency on non‑financial assets. It will enhance our capacity to enforce tax compliance and combat tax evasion that undermines government revenues.” Indonesia’s involvement ensures that its tax authorities gain access to key global property information for enforcement and policy planning.
Benefits for Indonesia’s Tax System
Indonesia gains several advantages from joining the data‑exchange framework. The agreement will help authorities detect undeclared offshore properties owned by Indonesian taxpayers. It will also strengthen compliance by giving the Directorate General of Taxes access to structured and reliable foreign property records.
OECD Director of the Centre for Tax Policy and Administration Manal Corwin underscored the initiative’s importance. She explained, “Through the automatic exchange of property data, jurisdictions have helped to increase transparency in a sector that has long been difficult to monitor.” She also encouraged broader international participation to strengthen global standards and improve tax administration.
Global Implications of Property Taxation Data Sharing
Indonesia’s participation reflects a global shift toward more robust tax cooperation. The IPI MCAA expands previous international reporting systems, which focused mainly on financial assets. This broader approach helps countries address tax leakages tied to real estate.
Corwin expressed hope that the initiative will continue to grow, adding that she expects more jurisdictions to join in the coming years. The agreement sets a new benchmark for transparency and provides a model for future cross‑border tax initiatives.
Related National Policy Developments
Indonesia’s participation in the OECD framework coincides with the government’s advancement of several domestic policy reforms. Officials plan to expand the number of Special Economic Zones from 25 to 31 by 2026 to strengthen the country’s investment competitiveness. The government also intends to update the Indonesian Standard Industrial Classification (KBLI) to keep pace with evolving business activities.
Lawmakers are considering targeted tax incentives for state‑owned defense companies such as PT Dirgantara Indonesia, PT PAL, and PT Pindad. They argue that fiscal support will help these firms grow and compete internationally. The House of Representatives has also approved export duties for gold and coal to boost revenue and support fiscal sustainability.
Additionally, the Directorate General of Taxes issued Regulation No. PER‑21/PJ/2025 to update procedures for submitting complaints within the institution. The regulation aims to enhance legal certainty and facilitate easier reporting of concerns by both employees and the public.
Strengthening Indonesia’s Tax Governance Framework
Indonesia’s decision to adopt the OECD IPI MCAA marks a significant step in modernizing its tax governance. The framework will enhance compliance, improve transparency, and strengthen cooperation with international partners. As global standards evolve, Indonesia positions itself as an active participant in building a fair and accountable tax ecosystem that protects national revenue and supports long‑term stability.
Source: news.ddtc.co.id
Image: Stoica Adrian / Canva
