Taxation strategies to boost the economy

Good morning, Chief.

Here is an important update on the business world that needs your attention today, curated by the SUAR Team.

Indonesia's Tax Ratio Could Increase with These Two Strategies

Indonesia's low tax ratio is a constant topic of discussion. Indonesia can increase its tax ratio by implementing two strategies: first, by resolving four fundamental tax issues; second, by closing five tax leaks. Tax revenue can increase without having to raise rates, which would burden the public and the business world.

The five tax leaks are: first, the shadow economy, which refers to economic activities not officially recorded by the government. Second, reduction of taxable income. Third, tax evasion activities. Fourth, the practice of Base Erosion and Profit Shifting (BEPS), a result of globalization that affects taxable income. Fifth, the practice of not reporting and not paying tax liabilities. This tax leakage occurs when a tax liability is due but not fulfilled.

Read more here.

Prospering Farmers, Achieving Food Security

The Indonesian government has allocated a food security budget of Rp 164.4 trillion for 2026. This fund is allocated to three main focuses: production, consumption, and distribution of food reserves.
Currently, the government is making various efforts to support this, one of which is the increase in the government purchase price (HPP). The HPP for unhusked rice is now Rp 6,500 per kilogram as of January 15, 2025. This HPP increase is expected to save farmers from middlemen. Farmers will prosper if their produce is well-absorbed and if imports are avoided.

Read more here.

Hotelier Efforts to Attract Guests Nearing Year-End

The hotel industry is now in a state of flux. The remaining "pinched holidays" or long weekends in September and December are forcing them to think creatively to attract both domestic and international tourists to stay.
The government has designated a national holiday for September 5, 2025, to commemorate the Prophet Muhammad's Birthday. The next national holiday is on December 25 for Christmas, with a collective leave day on December 26, 2025, leading up to the New Year's holiday in 2026.

Various efforts are being made to maximize occupancy potential during these two remaining long holiday opportunities. One such effort is collaborating with airlines and holding events.

Read more here.

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

Amidst geographical challenges and the complexity of the digital era, supply chain security as the heart of the economy has become key to national distribution stability. Various parties, from energy companies, logistics providers, to developers of advanced technology, are now focused on a holistic approach that combines inter-party collaboration, human resource competency improvement, and the use of artificial intelligence technology to secure the flow of goods and data.

See the strategies and efforts of energy companies from Mind.ID, Elnusa, PLN, to Astra International in managing risks and anticipating security disruptions.

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Tax Incentives to Smooth the Economy

Tax incentive data is projected to continue increasing, reaching Rp 563.6 trillion in the 2026 State Budget Draft, an increase from this year's allocation of Rp 530.3 trillion. This increase shows how tax incentives are an important instrument in supporting economic growth and public welfare.
These incentives, which are a form of tax expenditure, are specifically allocated to key sectors that have a broad impact on the economy and daily life. One of the main focuses is the exemption of VAT for basic necessities, education services, and public transportation, which is allocated at Rp 82.1 trillion.

Read more here.

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

Danantara Monitor Launch and Public Discussion: The launching and public discussion event "Danantara: Transparency and Green Industry Investment" will be held on Wednesday, August 27, 2025, from 1:00 PM to 3:00 PM WIB in Jakarta. The 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. The event can be watched online on the CELIOS YouTube Channel.