Ministry of Finance Teams Up with Police Task Force to Tackle Shadow Economy
JAKARTA — The government is stepping up efforts to capture potential state revenue from hidden economic activities, also known as the shadow economy. Through the Directorate General of Taxes (DGT), the Ministry of Finance (MoF) is collaborating with the Special Task Force (Satgassus) of the Indonesian National Police to monitor and crack down on illegal economic activities that have so far gone under the radar.
The DGT and Satgassus have held discussions to identify strategic sectors that will be the focus of efforts to optimize tax revenue. This collaboration also aims to strengthen synergy in data exchange and law enforcement.
"The collaboration between the DGT and Satgassus Polri focuses on collecting taxes from the shadow economy by enhancing synergy, exchanging data, and enforcing the law against various illegal economic activities that could harm state revenue," explained Rosmauli, Director of Dissemination, Services, and Public Relations at the DGT, as quoted from a DGT press release on June 17, 2025.
The primary focus of this collaboration is on illegal activities that pose a significant threat to state revenue. These include illegal fishing (unauthorized fishing), illegal mining, illegal logging, and various forms of economic crimes.
Crackdown on Illegal Cigarettes
In a similar move, the Directorate General of Customs and Excise (DGCE) has formed a Task Force for the Prevention of Illegal Cigarettes. According to Djaka Budhi Utama, Director General of Customs and Excise, as quoted by kontan.co.id, the task force was established to maintain stability in state revenue from excise taxes and curb the circulation of illegal cigarettes, which harm both the state and the public.
As a result, in the first half of 2025, the number of enforcement cases related to illegal cigarettes dropped by 13.2% compared to the same period last year. However, despite the decrease in cases, the quality of enforcement improved, with 285.81 million illegal cigarettes seized.
In terms of state revenue, data from the Ministry of Finance shows that as of May 2025, non-tax revenue stood at IDR 188.7 trillion, down 5.9% from the previous year. In contrast, the customs and excise sector recorded positive growth of 12.6%, with total revenue reaching IDR 122.9 trillion. (KEN)
