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Analysis: Revenue task force raises concerns, security forces in fiscal affairs

Tenggara Strategics (The Jakarta Post)
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Tue, July 1, 2025 Published on Jun. 30, 2025 Published on 2025-06-30T11:32:03+07:00

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Analysis: Revenue task force raises concerns, security forces in fiscal affairs Gen. Listyo Sigit Prabowo (left) takes the oath on Jan. 27, 2021, during his inauguration as the National Police chief at the State Palace in Jakarta. (Presidential Palace Press Bureau/Laily Rachev)

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oncerns over the expanding role of security forces in Indonesia’s civilian institutions have intensified following the establishment of a special task force on state revenue, initiated by National Police Chief Gen. Listyo Sigit Prabowo. The task force was created to combat illegal activities across several high-risk sectors, particularly those involving natural resources—such as illegal fishing, mining, and logging. It is part of a broader government effort to strengthen enforcement and reduce losses in non-tax state revenue (PNBP).

Despite public concerns, several ministries have voiced their support for the initiative. Finance Minister Sri Mulyani has backed the police chief’s move, noting that the formation of this revenue task force had been in planning for several years. It has already begun working with other ministries. For example, the Maritime Affairs and Fisheries Ministry (KKP) recently collaborated with the task force to seize small fishing vessels under 30 gross tonnage (GT) operating beyond 12 nautical miles without the required fishing permits.

According to calculations made by the task force, losses due to illegal practices in the fisheries sector alone could reach as high as Rp 3.2 trillion (US$197.78 million) each year. This is just one example of how non-tax state revenue continues to suffer due to regulatory violations and poor enforcement.

The formation of the task force comes amid weakening state revenue performance in 2025. As of May, total state revenue had only reached Rp 995.3 trillion—well below the Rp 1.1 quadrillion recorded during the same period in the previous year. While the government has posted a slight primary balance surplus of around Rp 192.1 trillion, this figure is not as reassuring as it appears at first glance. The surplus is largely the result of reduced government expenditure throughout 2025, particularly during the first quarter when the state budget efficiency measures were in place.

Supporters of the task force argue that extraordinary enforcement tools are necessary because Indonesia’s most significant sources of revenue loss come from deeply rooted criminal networks. These networks often operate across multiple sectors, making them difficult to disband through regular bureaucratic or legal channels. A prime example of this is last year’s high-profile corruption case involving tin mining. The case revealed a widespread conspiracy that spanned multiple tin concession areas, involved a lengthy list of mine owners, and even implicated several smelting companies. The scale of the operation and the depth of its coordination ultimately caused state losses estimated to be as high as Rp 271 trillion.

Much of the criticism directed at the task force stems from the sudden and opaque manner in which it was introduced, in addition to unclear chain of command. Its announcement closely coincided with news surrounding the creation of a new state revenue agency (Badan Penerimaan Negara, or BPN), leading to widespread public confusion between the two entities. The task force, in fact, was formed under the authority of Law No. 2 of 2002 on the National Police, specifically Article 14 paragraph (1) points b and i, meaning it remains under the police’s institutional umbrella. In contrast, the planned BPN would report directly to the president.

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Adding to the confusion, the National Police Chief is designed to also be a member of the BPN’s supervisory board—an oversight body that also includes the commander of the Indonesian National Armed Forces (TNI). This has only heightened public anxiety over the extent of military involvement in state financial affairs.

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