JAKARTA. Indonesia's Directorate General of Taxes (DGT) has launched a pilot implementation of the Tax Control Framework (TCF) as part of its Cooperative Compliance approach in collaboration with PT Pertamina (Persero).
The initiative marks the DGT's first step toward fostering a more collaborative tax compliance model while mitigating potential tax disputes at an early stage.
Director General of Taxes Bimo Wijayanto said the pilot follows an extensive preparation period. According to him, the implementation of the TCF is expected to ensure that the Cooperative Compliance approach operates effectively.
In the initial phase, Pertamina has been selected as the DGT's first partner for the pilot program, covering the January–December 2026 tax period.
The pilot covers five types of income tax:
Income Tax Article (ITA) 4(2)
Income Tax Article (ITA) 15
Income Tax Article (ITA) 22
Income Tax Article (ITA) 23
Income Tax Article (ITA) 26
During the pilot period, Pertamina will apply the self-assessment mechanism based on the Tax Control Framework. The DGT and Pertamina will also conduct compliance arrangement discussions and periodic evaluations to refine the program's implementation further.
Early Tax Risk Mitigation
The implementation of the Tax Control Framework is expected to mitigate potential tax issues at an early stage. Under the Cooperative Compliance approach, tax risks are discussed during business processes rather than after transactions have taken place.
"With the support of the TCF and data integration, tax risks can be identified earlier, providing greater legal certainty, reducing compliance costs, and minimizing the potential for disputes," Bimo said in a written statement issued by the DGT.
The approach is expected to strengthen the relationship between the tax authority and taxpayers through greater transparency, more intensive communication, and joint tax risk management.
Strengthening Corporate Governance
Mega Satria, Finance Director of PT Pertamina (Persero), said the implementation of the Tax Control Framework is intended not only to improve the company's tax compliance.
According to him, the framework will also strengthen corporate governance by enhancing transparency and improving risk management.
"The implementation of the TCF reflects Pertamina's commitment to good corporate governance while reinforcing compliance with tax regulations," he said.
Looking ahead, the DGT plans to expand the Tax Control Framework pilot to other state-owned enterprises (SOEs), including PT Pelabuhan Indonesia (Persero) and PT Perusahaan Listrik Negara (Persero).
If the initial phase proceeds as planned, the Cooperative Compliance approach through the Tax Control Framework could eventually be extended to other strategic taxpayers as part of Indonesia's broader transformation of tax compliance oversight. (KEN)
