TEMPO.CO, Jakarta - The Civil Society Coalition for Security Sector Reform has rejected a policy by Indonesia's Directorate General of Taxes (DGT) that involves Indonesian Military (TNI) village supervisory non-commissioned officers, known as Babinsa, in monitoring taxpayer compliance.
The coalition argues that the policy blurs the boundaries between civilian administration and military authority, while raising concerns over privacy and potential intimidation of taxpayers.
"This expands state surveillance over citizens without an adequate legal basis and could create intimidation in the relationship between the public and tax authorities," Indonesia Risk Centre Chairman Julius Ibrani said in a statement on Tuesday, July 21.
Tax Circular Draws Criticism
The controversy stems from Circular Letter No. SE-8/PJ/2026 on Guidelines for Taxpayer Compliance Supervision, issued on July 15.
The circular states that taxpayer monitoring may be conducted through various methods, including visits, canvassing, direct observation, and the development of information networks "through Babinsa or village supervisors."
According to Julius, tax supervision and collection are civil administrative functions that should be carried out based on the principles of legality, accountability, data protection, and public service.
Indonesia's tax system follows a self-assessment model, under which the state may conduct guidance, supervision, audits, and law enforcement. However, he stressed that such powers must remain within the authority of tax officials and civilian law enforcement agencies.
"Involving Babinsa in collecting tax-related information shifts the approach from voluntary compliance to a security-oriented one," he said.
Questions Over TNI's Legal Mandate
The coalition also questioned the legal basis for involving the military in tax matters.
Under Indonesia's TNI Law, the military's primary duties are to safeguard state sovereignty, maintain territorial integrity, and protect the nation from threats. Even military operations other than war (OMSP) are limited to specific assignments and must be based on state political decisions.
"Monitoring tax compliance, collecting information on citizens' economic activities, or mapping potential taxpayers are not defense functions and cannot be expanded through an administrative circular," Julius said.
Privacy and Data Protection Concerns
The coalition warned that the policy could jeopardize taxpayer confidentiality and the right to privacy.
Information related to individuals' income, assets, business activities, transactions, and economic conditions constitutes sensitive data that should only be accessed for legitimate tax purposes under clear accountability mechanisms, Julius said.
Allowing such information to be collected through territorial military networks outside the DGT's institutional structure increases the risk of misuse, data leaks, stigmatization, and social pressure on citizens, he added.
The Civil Society Coalition for Security Sector Reform comprises several organizations, including Imparsial, KontraS, the Indonesian Legal Aid Foundation (YLBHI), Centra Initiative, Amnesty International Indonesia, DeJure, and Raksha Initiatives.
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