By Kusnandar & Co., Attorneys At Law – Jakarta, Indonesia
Finance Minister Purbaya Yudhi
Sadewa’s decision to involve the Indonesian National Armed Forces (TNI) and the
National Police (Polri) in dismantling protection networks (bekingan)
behind tax evaders and illegal economic actors is a bold and noteworthy move.
At a time when the government is under pressure to strengthen state revenue,
this initiative signals that taxation is no longer treated merely as an
administrative matter, but as a serious law-enforcement and governance issue
with strategic implications.
For years, weak tax realization has
often been attributed to high tax rates or low compliance awareness among
taxpayers. Purbaya’s statement, however, exposes a deeper and more
uncomfortable reality: the core problem lies not only with tax evaders
themselves, but with systemic protection networks that allow them to operate
with impunity. This is not a technical problem; it is an issue of institutional
integrity that has long undermined the effectiveness of Indonesia’s fiscal
policy.
The collaboration between the
Ministry of Finance and state security institutions marks a paradigm shift in
tax enforcement. It reflects a transition from routine audits and administrative
sanctions toward a firmer, more comprehensive legal approach. Such a strategy
aligns with broader anti-corruption efforts, which recognize that entrenched
illegal practices can only be dismantled through cross-institutional
cooperation capable of cutting off political, bureaucratic, and security
backing.
This approach is particularly
relevant in sectors such as illegal cigarette production and distribution,
which has caused significant revenue leakage for years. In these cases, the
presence of organized protection often renders conventional enforcement
ineffective. Purbaya’s willingness to confront these interests suggests
political courage — a readiness to disrupt long-standing arrangements and
challenge powerful actors who have thrived in regulatory gray zones.
However, boldness alone will not
guarantee success. The initiative faces serious structural challenges that must
be addressed if it is to deliver lasting results. First, involving TNI and
Polri should not be reduced to ad-hoc joint operations. It requires clear legal
frameworks, precise division of authority, and disciplined coordination between
fiscal authorities, law enforcement, and intelligence units. Past experience
shows that coercive measures without strong institutional reform often produce
only short-term gains, while leaving underlying problems intact.
Second, efforts to dismantle bekingan
networks demand a high level of transparency and accountability. Public trust
will hinge on whether enforcement is conducted consistently and without
favoritism. If operations appear selective or politically motivated, public
skepticism will grow, and the initiative risks being dismissed as rhetorical
rather than transformative. Clear procedures, evidence-based actions, and
external oversight are therefore essential.
Equally important is internal reform
within the Ministry of Finance itself. Restructuring personnel in the
Directorate General of Taxes and Customs is a necessary step, but it is not
sufficient on its own. A deeper reform agenda must focus on strengthening
internal controls, minimizing opportunities for data manipulation, and
fostering a culture of integrity. Without this, external enforcement will
merely compensate for weaknesses that should have been resolved internally.
Ultimately, the success of Purbaya’s
strategy will be measured by public confidence. When citizens see that tax
enforcement is fair, firm, and free from hidden protection, voluntary
compliance is likely to improve. In that sense, tax reform is not only about
boosting revenue, but about reinforcing the legitimacy of the state itself.
In conclusion, Purbaya’s decision to
involve TNI and Polri sends a powerful signal that the government is serious
about confronting long-standing obstacles to fiscal reform. Yet, this strategy
will only succeed if it is accompanied by transparent implementation, strong
inter-agency coordination, and sustained institutional reform. If these
conditions are met, Indonesia may be entering a new chapter in credible and
effective tax governance.
By : K&Co - January 28, 2026
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