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The Directorate General of Taxes (DGT) under Indonesia’s Ministry of Finance has firmly denied reports suggesting the involvement of Bintara Pembina Desa (Babinsa) from the Indonesian National Armed Forces (TNI) in actively "hunting" for tax data in villages. Instead, the DGT clarified that the role of Babinsa, along with Bhayangkara Pembina Keamanan dan Ketertiban Masyarakat (Bhabinkamtibmas) from the National Police, is strictly limited to supporting coordination in their respective territories when tax officials require assistance during field visits. This clarification comes amidst heightened public attention following the issuance of a new circular on tax compliance.

DGT’s Official Stance on Community Coordination

In an official statement released via its Instagram account, @ditjenpajakri, on Monday, July 20, 2026, the DGT explicitly stated that "News regarding Babinsa participating in hunting for tax data in villages is confirmed to be UNTRUE." The DGT emphasized that these territorial apparatuses are not executors of tax examinations but merely provide support for coordination, ensuring that field visits by tax officers proceed according to established procedures. This supportive role, according to the DGT, is not a new practice but has been in place for some time, aligning with similar collaborative efforts seen in various other government activities. In many scenarios, local community leaders and personnel, including Babinsa, function as companions or witnesses, verifying that tax officers have indeed conducted their visits in line with official protocols.

The DGT further highlighted its increasing reliance on advanced technology and digital data analysis for accurate, risk-based supervision. This modern approach leverages information systems, digital data, satellite imagery, open-source media, and other diverse data sources to enhance oversight capabilities. The objective of this technological shift is to improve data quality without imposing new obligations on taxpayers or indiscriminately expanding tax examinations. This strategy underscores a move towards more efficient and targeted supervision, aiming for sustained taxpayer compliance.

The Genesis of Public Scrutiny: SE-8/PJ/2026

The recent public discourse surrounding the involvement of Babinsa and Bhabinkamtibmas in tax-related activities was triggered by the issuance of Directorate General of Taxes Circular Letter Number SE-8/PJ/2026. This comprehensive directive, titled "Guidelines for Taxpayer Compliance Supervision," was released on July 15, 2026. The circular mandates tax officers to foster continuous taxpayer compliance, particularly in the context of Indonesia’s self-assessment tax system, where taxpayers are responsible for calculating, paying, and reporting their own taxes.

The circular outlines a multi-faceted supervision framework that applies to both registered and unregistered taxpayers. This framework encompasses three primary areas of oversight:

1. Supervision of Registered Taxpayers: This involves ongoing monitoring through activities such as Periodic Payment Supervision (PPM) and Material Compliance Supervision (PKM). These programs are designed to ensure timely and accurate tax payments and reporting.
2. Supervision of Unregistered Taxpayers: For individuals or entities not yet within the tax system, supervision is conducted through extensification activities, aimed at broadening the tax base by identifying new potential taxpayers.
3. Regional Supervision: This critical component involves the systematic collection of economic data within specific work areas. The primary goal is to encourage increased taxpayer compliance, thereby expanding the tax database and strengthening the DGT’s understanding and coverage of economic activities across different regions.

Multi-faceted Approach to Data Collection and Supervision

The DGT employs various methods for collecting data and information, both through field activities and non-field approaches, involving all DGT employees. Field data collection typically entails direct visits to the residences, business premises, or professional locations of taxpayers or related parties. The purpose of these visits is to identify new tax subjects and/or objects, particularly those that may not yet be registered or fully compliant.

Complementing this, non-field data collection leverages information technology and other administrative resources. This method allows for the gathering of crucial data without the need for direct physical visits, enhancing efficiency and reach. The DGT’s supervisory activities are diverse, employing a range of techniques and approaches to ensure comprehensive oversight. These include:

• Visitasi (Visitations): Direct visits to taxpayers.
• Penyisiran (Canvassing): Systematic sweeps of areas to identify potential taxpayers.
• Pengamatan Langsung (Direct Observation): On-site monitoring of economic activities.
• Pembangunan Jejaring Informasi (Information Network Development): This is where community figures like Babinsa and Bhabinkamtibmas come into play, serving as channels for local coordination and information sharing. Their role is not to enforce or investigate but to facilitate the smooth operation of DGT officers in unfamiliar territories, often acting as trusted local intermediaries.
• Remote Sensing Technology: Utilizing satellite imagery and other geospatial data for property assessment and economic activity monitoring.
• Web Scraping: Automated extraction of data from websites for economic intelligence.
• Pemanfaatan Informasi Media (Utilization of Media Information): Analyzing news, social media, and other public information sources.
• Telaah Jurnal atau Karya Ilmiah (Review of Journals or Academic Works): Drawing insights from research and publications.
• Analisis Data yang Belum Teridentifikasi (Analysis of Unidentified Data): Processing raw data to uncover hidden tax potential.
• Bedah Wajib Pajak (Taxpayer Dissection): In-depth analysis of specific taxpayer profiles.
• Bedah Kawasan Ekonomi (Economic Area Dissection): Detailed study of economic zones to understand tax potential.
• Mirroring Hasil Pemeriksaan/Penyidikan/Proses Bisnis Lainnya (Mirroring Results of Audits/Investigations/Other Business Processes): Cross-referencing data from various government and business sources.
• Taxation Partnership: Collaborating with other government agencies or private entities for data sharing and compliance initiatives.
• Other Lawful Methods: Any other means consistent with legal provisions to enhance tax compliance.

The Role of Babinsa and Bhabinkamtibmas in Indonesian Society

To fully understand the context of the DGT’s clarification, it is crucial to recognize the established roles of Babinsa and Bhabinkamtibmas within Indonesian society. Babinsa, or Village Supervisory Non-Commissioned Officers, are members of the TNI assigned to specific villages or sub-districts. Their primary duties involve territorial guidance, assisting in community development, and acting as a liaison between the military and the civilian population. Similarly, Bhabinkamtibmas, or Community Police Officers, are members of the National Police stationed in villages. Their responsibilities include maintaining public order and safety, resolving minor disputes, and fostering community policing. Both roles are designed to create a direct link between state security apparatuses and local communities, often placing them as trusted figures in village life.

Historically, the involvement of military personnel in civilian affairs in Indonesia has been a sensitive topic, particularly given the country’s past under the New Order regime. Post-Reformasi, significant efforts have been made to professionalize the TNI and delineate its role strictly to national defense, separating it from day-to-day civilian administration. Therefore, any perceived encroachment of military or police roles into civilian functions like tax collection can quickly draw public scrutiny and raise questions about civil-military relations and potential overreach. The DGT’s clarification is thus vital to reaffirming that the core function of tax enforcement remains with civilian tax officials, while Babinsa and Bhabinkamtibmas provide only supportive coordination within their established community roles.

Indonesia’s Tax Revenue Landscape and Compliance Challenges

Indonesia, Southeast Asia’s largest economy, relies heavily on tax revenue to fund its ambitious development agenda, including critical infrastructure projects, social welfare programs, and public services. For the fiscal year 2026, the government has set an ambitious tax revenue target of approximately Rp 2,100 trillion (around USD 140 billion), reflecting the nation’s growing financial needs. However, Indonesia’s tax-to-GDP ratio, which has historically hovered around 10-11%, remains relatively low compared to many other developing and developed nations in the region. This indicates a significant gap between potential and collected tax revenues, highlighting the persistent challenge of expanding the tax base and improving compliance.

Several factors contribute to these challenges: a vast and geographically dispersed population, a substantial informal sector that operates outside formal economic oversight, and varying levels of tax awareness and compliance among different segments of the population. The self-assessment system, while promoting taxpayer responsibility, simultaneously places a greater onus on the DGT to ensure effective supervision and enforcement. Robust oversight is essential to prevent tax evasion and ensure fairness across the taxpaying public. The DGT’s strategic efforts to enhance compliance are therefore not just about increasing revenue but also about fostering a more equitable and transparent tax system crucial for sustained national development.

DGT’s Digital Transformation and Future of Tax Enforcement

The DGT’s emphasis on digital transformation represents a significant pivot in its enforcement strategy. The deployment of advanced information systems, sophisticated digital data analytics, and tools like satellite imagery and web scraping allows the DGT to conduct more precise and risk-based audits. This technological shift enables the identification of potential non-compliance patterns and high-risk taxpayers with greater efficiency, reducing the need for broad, resource-intensive field operations. For instance, satellite imagery can be used to identify undeclared property developments or agricultural activities, while web scraping can uncover undeclared online business transactions.

This modernization effort is designed to make tax supervision more intelligent and less intrusive. By focusing on "improving data quality," the DGT aims to create a comprehensive and accurate picture of economic activity, allowing for targeted interventions rather than widespread, potentially disruptive, examinations. This strategy aligns with global trends in tax administration, where data-driven approaches are increasingly seen as the most effective means to enhance compliance in complex digital economies. The DGT’s vision is to create a tax administration that is agile, responsive, and equitable, capable of adapting to evolving economic landscapes while upholding taxpayer rights.

Public Trust, Privacy, and Governance Implications

The discussion surrounding Babinsa and Bhabinkamtibmas involvement, even if clarified as supportive, inevitably touches upon sensitive issues of public trust, individual privacy, and the principles of good governance. For many citizens, the thought of military or police personnel being involved in any aspect of tax collection, however peripheral, can evoke concerns about potential intimidation or the blurring of lines between security and civilian administrative functions. Maintaining public trust is paramount for any tax authority, as voluntary compliance is significantly influenced by taxpayers’ confidence in the fairness, transparency, and integrity of the system.

The DGT’s proactive clarification, disseminated through its official channels, is a crucial step in mitigating potential misunderstandings and reaffirming its commitment to operating within legal and ethical boundaries. It signals an awareness of public perception and the need for clear communication regarding the roles and responsibilities of all parties involved in tax compliance efforts. Furthermore, civil society organizations and legal experts often advocate for a strict separation of powers and roles, particularly concerning the military’s engagement in civilian affairs. While coordination support is acceptable, any perception of direct enforcement or surveillance by non-tax officials could raise fundamental questions about taxpayer rights and the proper scope of state authority. The DGT must therefore continuously balance its mandate for effective tax collection with the imperative to protect individual liberties and uphold democratic governance principles.

Balancing Traditional Outreach with Modern Analytics

In conclusion, the Directorate General of Taxes’ strategy for enhancing taxpayer compliance is a sophisticated blend of leveraging existing community structures for coordination and rapidly adopting cutting-edge data analytics and digital technologies. The clarified role of Babinsa and Bhabinkamtibmas as facilitators and witnesses during field visits, rather than tax hunters, underscores a pragmatic approach to navigating Indonesia’s diverse geographical and social landscape. This traditional outreach, rooted in community engagement, complements the DGT’s forward-looking digital transformation, which prioritizes risk-based analysis and data quality improvement.

The DGT’s objective is clear: to establish a comprehensive, multi-pronged system that effectively widens the tax base, improves compliance, and ultimately secures the revenue necessary for national development. By transparently defining the scope of involvement for all supporting parties and emphasizing its core reliance on specialized tax officers backed by advanced technology, the DGT aims to foster an environment of trust and compliance. This dual strategy is designed to ensure that tax collection is robust, fair, and conducted with the highest standards of integrity and efficiency, propelling Indonesia towards its economic aspirations.