Taxation Strategy to Boost the Economy

A curation of the most important events that the business universe needs to know to start the day.

Taxation Strategy to Boost the Economy
Table of Contents

Good morning Chief... 

The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Indonesia's Tax Ratio Can Increase with These Two Strategies

  • The low tax ratio in Indonesia is always a topic of discussion. Indonesia can increase its tax ratio by implementing two strategies. First, resolve four fundamental tax problems. Second, close five tax loopholes. Tax revenue can then increase without having to raise rates, which could burden the public and the business world.
  • The five tax loopholes are, first, the shadow economy, which is economic activity not officially recorded by the government. Second, reduction of taxable income. Third, tax evasion activities (tax evasion). Fourth, base erosion and profit shifting (BEPS) practices; the impact of globalization affects taxable income. Fifth, the practice of not reporting and not paying outstanding tax liabilities. This tax leakage occurs because there are outstanding tax liabilities that should be paid but are not.

Read more here.

Improve Farmers' Welfare, Achieve Food Security

  • The Indonesian government has allocated a food security budget of IDR 164.4 trillion in 2026. These funds are allocated to three main focuses: production, consumption, and distribution of food reserves.
  • Currently, he said, the government has made various efforts expected to support this. One of them is the determination to increase the government purchase price (HPP). Now, the HPP for unhusked rice is IDR 6,500 per kilogram (kg) as of January 15, 2025. The increase in HPP is considered to save farmers from middlemen. Farmers will prosper if their production is absorbed properly, and imports are avoided.

Read more here.

Hotel Entrepreneurs' Efforts to Attract Guests Ahead of the End of the Year

  • The hotel industry is currently improving. The remaining 'sandwich' holidays, often called long weekends, in September and December are forcing them to rack their brains to attract both domestic and foreign tourists to stay.
  • The government has set a national holiday for September 5, 2025, to commemorate the Prophet Muhammad's Birthday. Meanwhile, the next national holiday falls on December 25 to commemorate Christmas and joint leave set on December 26, 2025, until the 2026 New Year holiday.
  • Various strategies are being implemented to maximize occupancy potential during the remaining two long holiday opportunities. One of them is by collaborating with airlines and holding events.

Read more here.

Geopolitical and Digital Challenges: Energy Companies' Strategies to Maintain Security

  • Amidst geographical challenges and the complexities of the digital era, supply chain security, as the heart of the economy, has become key to national distribution stability. Various parties, from energy and logistics companies to advanced technology developers, are now focusing on a holistic approach that combines inter-party collaboration, improving human resource competence, and utilizing artificial intelligence technology to secure the flow of goods and data.
  • See the strategies and efforts of energy companies ranging from Mind.ID, Elnusa, PLN, to Astra Internasional in managing risks and anticipating security disruptions.

Read more here.

Tax Incentives to Facilitate the Economy

  • Data on tax incentives is projected to continue to increase, reaching IDR 563.6 trillion in the 2026 RAPBN, an increase from this year's allocation, which is targeted at IDR 530.3 trillion. This increase shows how tax incentives are an important instrument in supporting economic growth and public welfare.
  • These incentives, which constitute tax expenditures, are specifically allocated to key sectors that have a broad impact on the economy and daily life. One of the main focuses is VAT exemptions for basic necessities, education services, and public transportation, with an allocation of IDR 82.1 trillion.

Read more here.

Indonesia Summit 2025 by IDN Times: Indonesia Summit 2025 organized by IDN Times will be held on August 27–28, 2025 at The Tribrata Darmawangsa, Jakarta. This year's event is an inspirational forum for cross-sector and cross-generation exchange of ideas. Carrying the theme Thriving Beyond Turbulence: Celebrating Indonesia’s 80 Years of Purpose, Process, and Possibility, this forum is expected to be a platform for young generations to collaborate and learn from leaders and prominent figures. Information regarding the series of events and how to participate can be accessed through the website indonesiasummit.com and Indonesia Summit social media.

Launching and Public Discussion of Danantara Monitor: The launching and public discussion of Danantara: Transparency and Investment in the Green Industry will be held on Wednesday, August 27, 2025, from 13:00-15:00 WIB in Jakarta. This event is organized by Danantara Monitor, a platform that aims to ensure transparency and accountability in Danantara's investment activities. The discussion will feature experts from several institutions, such as Chien Yen Goh from Third World Network, Bhima Yudhistira from Celios, and Yassar Aulia from ICW. This event can be watched online on the CELIOS YouTube Channel.

"Do what you can, with what you have, where you are." (Theodore Roosevelt - Former US President)

Have a good day Chief.

Team SUAR