🇮🇩Week of October 26

Indonesia's Directorate General of Taxes (DJP) has opened a program allowing taxpayers to apply for relief from administrative tax penalties, including reductions of fines by up to 100 percent for those who meet the conditions and deadlines. The program is set out under PMK 71/2026, the finance minister's regulation cited in coverage of the measure.123

Not every penalty can be reduced. Three categories of tax sanctions cannot be submitted for a reduction under the regulation, and a taxpayer whose application has already been rejected twice cannot file again.45

The tax office framed the measure as penalty relief rather than a tax amnesty, distinguishing it from a broad forgiveness of unpaid tax.6

The Indonesian Army (TNI AD) has revoked three elite qualifications held by Letda AG, including commando and counterterrorism certification, after the shooting death of Letda Jihad. The officer is also being charged under Article 474.12

The case file of the suspect who shot Letda Jihad has been transferred to Denpom, the military police detachment handling the case.3

Letda Jihad, a Kopassus officer, died when a pistol discharged in a weapons warehouse.4

Kompas called for supervision and psychological testing to be evaluated to prevent TNI soldiers from dying in firearms incidents.5

Indonesia's Corruption Eradication Commission (KPK) searched the head office of cigarette maker PT Djarum and the customs office in Kudus, Central Java, as part of a bribery investigation into the handling of cigarette excise bands. Investigators said the searches were tied to alleged bribery in the processing of excise stamps for cigarettes.1234

During the raids the KPK seized documents and evidence, including items referred to as BBE, from both the Kudus customs office (KPPBC Kudus) and PT Djarum. The commission said the case is a development of an earlier customs case linked to Djarum's excise.567

The searches were carried out at two locations in Kudus, the company's headquarters and the local customs office, and the KPK set out its reasons for targeting both sites.18910

Indonesia's government is reviewing a revision of the anti-corruption law (UU Tipikor) and has opened the option of removing economic loss to the state from the definition of corruption. Law Minister Yusril Ihza Mahendra said the element of state loss will not be removed from the corruption definition, and President Prabowo Subianto stressed the protection of state wealth in the planned overhaul.1234

National Economic Council (DEN) chair Luhut Binsar Pandjaitan said the study on the corruption definition is targeted for completion next week. After meeting Luhut, Yusril spoke about refining the corruption definition, and Luhut said the article on state loss will not be deleted from the anti-corruption law.567

Attributed claim: The Corruption Eradication Commission (KPK) framed the revision as a new phase in the fight against corruption, saying it should push competition conducted with integrity. CNBC Indonesia warned that redefining corruption must not end in a weakening of the law.89

The push to revise the law follows a recommendation from the National Economic Council, and the proposal to redefine corruption has drawn a range of public responses centred on whether financial loss to the state should remain a criminal category. House lawmaker Sahroni supports the position that causing state losses should not by itself be a corruption offence.1011

Indonesia and Singapore agreed to set up a joint task force to handle forest and land fires (karhutla) together, and to bring those responsible to court. The two sides will also trace the money behind the burning, according to the agreement reached during Singaporean Foreign Minister Vivian Balakrishnan's visit to Jakarta.1234

Indonesian Foreign Minister Arrmanatha Christiawan Nasir received Balakrishnan and conveyed a message from President Prabowo Subianto to the Singaporean minister. Balakrishnan said El Nino is a natural phenomenon but the fires themselves are caused by human action.5678

Singapore will act against companies linked to the fires, including firms registered in Singapore. The city-state had earlier warned seven Indonesian companies over transboundary haze and is weighing legal steps against them.910

Wakil Ketua KPK Johanis Tanak proposed that the asset-forfeiture bill (RUU Perampasan Aset) include a provision allowing the state to seize officials' wealth that is not reported in the LHKPN, the state officials' wealth declaration. The proposal was reported by CNN Indonesia and Detik on Tuesday.12

JAMAK rejected including the offence of illicit enrichment in the asset-forfeiture bill, arguing that officials should not be presumed corrupt simply for growing wealthier, Kompas reported. Antara reported the same rejection of the illicit enrichment provision.34

House Commission III lawmaker Sahroni warned that seizing officials' assets without proof could violate human rights, saying the measure would breach rights if applied without cause. The warning was reported on Thursday by Detik and Merdekanews, which said the House saw the proposal as potentially violating human rights.567

Commission III continued examining the supervision aspects of the asset-forfeiture bill after hearing from experts, according to the House's FPKB faction. A Kompas report said experts flagged the risk that the value of seized goods could fall.89

Commission III member Sahroni also cautioned that foreign interests were behind the asset-forfeiture bill, Kumparan reported. The bill's seizure provisions drew the KPK proposal, the JAMAK rejection and the human rights warning in the same week.10

Danantara, Indonesia's sovereign wealth fund, plans to shut 750 state-owned enterprises as part of a restructuring carried out without consultants, the fund's chief operating officer said. The fund is targeting Rp200 trillion in investment in 2026, relying on dividends from state-owned firms to help fund it.123

The chief operating officer said state-owned enterprise profit rose 18.4 percent on the back of the transformation. Danantara also corrected state-owned firms' bookkeeping by up to Rp135 trillion over 18 months.45

On Thursday Danantara issued a new rule limiting perks for state-owned company bosses, including police motorcycle escorts and adjutants.6

Indonesia has formally cut its natural gas exports to Singapore, a step that prompted warnings from lawyer Hotman Paris that Jakarta could face a lawsuit over the reduction. Energy Minister Bahlil Lahadalia said the cut does not breach the export contract. Indonesian gas flows to Singapore had reached 409.55 Mmscfd.1234

Singapore's Energy Market Authority said the reduction amounts to less than 2 percent of the city-state's gas needs and does not disrupt its supply. Singapore imports natural gas from a range of sources around the world beyond Indonesia.567

An analyst warned that other countries could become reluctant to sign contracts with Indonesia because of the export policy. Hotman Paris said Indonesia risks being sued following the cut to Singapore.82

President Prabowo Subianto summoned the head of the Meteorology, Climatology and Geophysics Agency (BMKG) and the home minister to the Presidential Palace to discuss forest and land fires, El Nino and preparations for the rainy season. The meeting also covered mitigation for landslides and floods, and handling of the fires was on the agenda of a limited cabinet meeting.123

El Nino has pushed back the start of the rainy season by up to 30 days, the condition behind the fire and disaster planning at the palace. Prabowo described those behind the forest and land fires as environmental terrorists, and a revision of the law was being planned immediately.45

The home minister and the BMKG chief were reported arriving at the palace for the meeting, which outlets framed around the fires and disaster mitigation.6789