Indonesia’s recently appointed Minister of Finance, Purbaya Yudhi Sadewa, has rejected the 2025 tax amnesty programme, arguing it could create perverse incentives for tax evaders and undermine the country’s fiscal system.
In greater detail, Sadewa has ruled out extending the tax amnesty initiative into a third phase, as he believes that implementing too many tax amnesties is harmful, as such policies weaken the credibility of fiscal management and send the wrong message to taxpayers. This raises concerns that the public may become accustomed to disregarding tax regulations.
Furthermore, Sadewa noted that Indonesia has already carried out two tax amnesty programmes, making him question the very definition of an ‘amnesty’ itself if it is repeatedly granted. The first tax amnesty took place back in 2016–2017, at which time the government claimed it would be a one-off initiative designed to encourage taxpayers to declare previously undisclosed assets. The scheme attracted 956,793 taxpayers who reported a total of Rp4,854.63 trillion in assets. From this disclosure, the state collected Rp114.02 trillion in redemption payments, equivalent to 69% of the Rp165 trillion target.
The government later launched a second programme, under the name Voluntary Disclosure Programme, which ran from the 1st of January, 2022, until the 30th of June, 2022. A total of 247,918 taxpayers participated in this second round, with Rp594.82 trillion in declared assets. The state, as a result, collected Rp60.01 trillion in income tax during the scheme.
“If there’s a tax amnesty every two years, people might think they don’t need to comply, because there will always be another amnesty. That’s not a good signal,” Sadewa underscored during a media briefing at the Ministry of Finance office in Jakarta on Friday, the 19th of September.
He also emphasised that sound fiscal policy should be built on legal certainty and fairness, not repeated amnesties that undermine compliance.
“The right thing to do is to implement the tax programme properly and collect taxes correctly. If there are violations, they should be sanctioned. But don’t keep granting amnesties,” he added.
Additionally, Sadewa argued that tax revenue growth should be driven by stimulating a healthy economy. With a strong economic base, the tax-to-GDP ratio would naturally increase without relying on short-term amnesty schemes. The minister believes that the solution lies not in repeated amnesties, but in consistent tax reform measures such as digitalising services, enhancing audit quality, and enforcing the law firmly.
“Tax amnesty is not the solution. What we need is genuine reform of the tax system, not repeated amnesties,” he concluded.