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PMK 111 Tahun 2025 (MoFR 111/2025): New Framework for Taxpayer Compliance Supervision and SP2DK

Tax Update
PMK 111 Tahun 2025 (MoFR 111/2025): New Framework for Taxpayer Compliance Supervision and SP2DK
February 10, 2026
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Minister of Finance Regulation Number 111 of 2025 (MoFR 111/2025, also referred to as PMK 111 Tahun 2025) on Taxpayer Compliance Supervision takes effect on January 1, 2026. It sets out how the Directorate General of Taxes (DGT) supervises registered taxpayers, unregistered taxpayers, and economic activity in each working area, including through the Request for Explanation of Data and/or Information (SP2DK).

summary:

 
Regulation MoFR 111/2025 (PMK 111/2025) concerning Taxpayer Compliance Supervision
Effective date January 1, 2026
Scope of supervision Registered Taxpayers, Unregistered Taxpayers, Regional Supervision
Supervisory activities for registered taxpayers SP2DK, Tax Compliance Reminder Letter, Warning Letter
SP2DK response deadline 14 days, extendable by 7 days
2026 tax revenue target IDR 2,693 trillion, around 23% above the 2025 realization
Supporting system DGT Coretax

A. Introduction: Why Tax Supervision Is Tightening in 2026

The year 2026 marks a new era of increasingly aggressive and integrated data-based tax supervision. With the tax revenue target of IDR 2,693 trillion, an increase of around 23% compared to the 2025 realization. Therefore, the Directorate General of Taxes (DGT) is required to carry out more intensive supervision efforts to optimize state revenue.

In this context, the two main instruments that will be the focus of implementation in 2026 are the launch of the DGT Coretax system and the enactment of Minister of Finance Regulation Number 111 of 2025 concerning Taxpayer Compliance Supervision, which effective starting on January 1, 2026. These two policies strengthen the data-based supervision approach, digitize processes, and improve the effectiveness of taxpayer compliance monitoring.

B. Important Changes in Regulations under PMK 111/2025

1. Scope, Form of Supervision, Authority of the DGT, and Taxpayer Obligations

 
No. Scope of Supervision Forms of supervision in the fulfillment of tax obligations Forms of Supervisory Activities Taxpayer Obligations
1 Registered Taxpayers
  1. reporting the place of business to obtain a Business Location Identification Number (NITKU)
  2. business reporting to be confirmed as a Taxable Entrepreneur (PKP);
  3. registration of taxable objects for Land and Building Tax (PBB) on plantations, forestry, oil and gas mining, geothermal mining, mineral and coal mining, and other sectors;
  4. reporting of PBB object notification letters;
  5. reporting of Notification Letters;
  6. payment and/or deposit of taxes
  7. tax deduction and/or collection
  8. bookkeeping or record keeping
  9. Other taxes.

Main activities:
The DGT has the authority to request explanations regarding data and/or information from taxpayers, conduct discussions, invite or conduct visits, issue tax compliance reminder letter, issue warnings letter, request transfer pricing documents, collect regional economic data in the working area, issue letters for supervision purposes, and carry out other supporting activities in accordance with taxation regulations.

Supporting activities:
proposing assessments for taxation purposes, discussions with relevant internal DGT officials and taxpayers, requesting data and/or information from third parties, and other activities as assigned.

 For the purposes of DGT supervision, taxpayers must respond to requests for explanations of data and/or information and/or the delivery of tax compliance reminder within a specified period of time, attend invitations from the DGT to appear at the DGT office either offline or online, and provide the DGT with the opportunity to conduct visits.
2 Unregistered Taxpayers
  1. registration to obtain a Taxpayer Identification Number (NPWP) or activate a Population Registration Number (NIK) as an NPWP;
  2. reporting the location of business activities to obtain a NITKU;
  3. business reporting to be confirmed as a PKP;
  4. registration of taxable objects for Land and Building Tax on plantations, forestry, oil and gas mining, mining, minerals and coal, and other sectors;
  5. payment and/or deposit of taxes
  6. tax deduction and/or collection
  7. reporting of notification letters; and
  8. Other taxes.
3 Regional Supervision supervision of economic activities carried out by taxpayers and identification of taxpayers in each working area.

2. Procedures for Implementing Supervision under MoFR 111/2025

To facilitate understanding, the procedures for implementing supervision are presented in the following flowchart:

A. Supervision of Registered Taxpayers: SP2DK, Reminder Letter, and Warning Letter

In order to supervise registered taxpayers, the DGT may carry out three types of supervisory activities, namely through the issuance of a Request for Explanation and/or Information Letter (SP2DK) (Appendix 1a), a Reminder Letter (Appendix 1b), and a Warning Letter (Appendix 1c). The procedures for conducting each of these monitoring activities are provided in the attachments to this newsletter (download here).

 

B. Supervision of Unregistered Taxpayers

The procedures for implementing supervision of unregistered taxpayers are provided in Appendix 2.

C. Regional Supervision

The procedures for implementing supervision of regional supervision are provided in Appendix 3).

C. Key Takeaways for Taxpayers

1. The 2026 Tax Revenue Target and Its Implications for the DGT

The increase in the 2026 tax revenue target, which is approximately 23% higher than the realization in the previous year, indicates a significant challenge for the DGT. This condition encourages the DGT to work more intensively in optimizing state revenue, among others through strengthening taxpayer compliance supervision and utilizing a more integrated tax administration system such as Coretax. These efforts are expected to improve taxpayer compliance while supporting the achievement of the tax revenue target.

2. Strengthening Tax Supervision through PMK 111/2025

Optimizing state revenue is supported not only by system transformation through Coretax, but also by the strengthening of supervisory mechanisms regulated under MoFR 111/2025. This provision reflects a broader and more integrated approach to supervision, covering registered taxpayers, potential unregistered taxpayers, as well as regional-based supervision to capture economic potential that has not yet been fully reported in the tax system.

3. Responding to SP2DK Properly and Cooperatively: 14-Day Deadline

Taxpayers who receive a Request for Explanation of Data and/or Information (SP2DK) must respond within 14 days of the letter being delivered, either by post, taxpayer account, or in person, depending on which event occurs first. If necessary, taxpayers may request a 7-day extension. During this process, maintaining a cooperative and transparent approach with the DGT is important to ensure that the clarification process runs smoothly and to minimize potential differences in interpretation. Therefore, taxpayers are encouraged to implement audit-ready management by preparing relevant data, documentation, and reconciliations from the beginning of the bookkeeping process, rather than only when the SP2DK is received.

4. Audit Ready Management: The Key to Being Prepared for Tax Audits

Audit ready management is an important approach for taxpayers to face increasingly intensive tax audits. Through this approach, companies proactively prepare data and documentation from the bookkeeping process to tax reporting, including inventorying and equalizing items that may be of concern to tax authorities.

With data readiness maintained from the outset, taxpayers can respond to requests for clarification, such as the Request for Explanation of Data and/or Information (SP2DK), more quickly and in a structured manner. This preventive approach not only helps meet response deadlines, but also minimizes the risk of errors, strengthens transparency, and creates more constructive communication between taxpayers and tax authorities.

Frequently Asked Questions about PMK 111/2025 and SP2DK

What is PMK 111 Tahun 2025 (MoFR 111/2025)?

MoFR 111/2025 is Minister of Finance Regulation Number 111 of 2025 concerning Taxpayer Compliance Supervision. Together with the DGT Coretax system, it strengthens the data-based supervision approach, digitizes processes, and improves the effectiveness of taxpayer compliance monitoring.

When does MoFR 111/2025 take effect?

MoFR 111/2025 is effective starting on January 1, 2026.

Who is covered by supervision under MoFR 111/2025?

Supervision covers three scopes: Registered Taxpayers, Unregistered Taxpayers, and Regional Supervision of economic activities carried out by taxpayers in each working area.

What is SP2DK?

SP2DK is the Request for Explanation of Data and/or Information Letter. It is one of three supervisory activities the DGT may use for registered taxpayers, alongside the Reminder Letter and the Warning Letter.

How long does a taxpayer have to respond to an SP2DK?

Taxpayers must respond within 14 days of the letter being delivered, either by post, taxpayer account, or in person, depending on which event occurs first. If necessary, taxpayers may request a 7-day extension.

What must taxpayers do during DGT supervision?

Taxpayers must respond to requests for explanations of data and/or information and/or the delivery of tax compliance reminder within a specified period of time, attend invitations from the DGT to appear at the DGT office either offline or online, and provide the DGT with the opportunity to conduct visits.

What is audit-ready management?

Audit-ready management is an approach in which companies proactively prepare data and documentation from the bookkeeping process to tax reporting, including inventorying and equalizing items that may be of concern to tax authorities. It helps taxpayers respond to an SP2DK more quickly and in a structured manner.

Why is the DGT intensifying supervision in 2026?

The 2026 tax revenue target is IDR 2,693 trillion, around 23% higher than the 2025 realization. This encourages the DGT to strengthen taxpayer compliance supervision and use a more integrated tax administration system such as Coretax.

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PMK 111 Tahun 2025 (MoFR 111/2025): New Framework for Taxpayer Compliance Supervision and SP2DK
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