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flag Indonesia ramps up tax audits on the wealthy and corporations to close a 2.78% GDP deficit, demanding millions in additional payments.

flag Indonesia is intensifying tax audits on wealthy individuals and large corporations to address a projected 2.78% of GDP budget deficit—the highest in two decades outside pandemic years. flag Authorities are demanding additional payments from high-net-worth families and major firms, with some asked to pay over $5 million, and proposing a 30% compromise. flag Tax collections through November reached only 79% of the revised annual target, down from 90% in 2024, due to weak growth and falling commodity prices. flag The government, under President Prabowo Subianto, has also pressured tycoons to buy low-yield Patriot Bonds and seized land, fueling concerns among the wealthy. flag Despite launching a digital tax system and targeting 200 evasion cases with over 60 trillion rupiah in potential penalties, critics warn aggressive enforcement may harm investment and trust in the system.

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