Gerindra Party Deputy Chairman Hashim Djojohadikusumo has stated that the government is expected to gain nearly Rp 500 trillion (roughly US$32 billion) in additional revenue next year. This windfall is projected to come from cracking down on tax evaders and implementing the national carbon market. 

 

Hashim, who is also the younger brother of President Prabowo, emphasized that the largest portion of this revenue will come from handling tax evaders. According to him, the total fines collected could amount to Rp 300 trillion by next year. 

 

“These fines will be collected from 300 rogue businessmen, including 25 who do not have a Taxpayer Identification Number [NPWP] and 15 who do not have domestic bank accounts,” said Hashim at the Indonesian Chamber of Commerce and Industry Tower on Wednesday, October 23. 

 

He added that most of these tax evaders are entrepreneurs in the crude palm oil (CPO) plantation sector. He estimates that Rp 189 trillion in fines could soon be added to the state treasury. 

 

Meanwhile, fines totaling Rp 120 trillion are scheduled to be paid into government coffers next year. Hashim stressed that this fresh influx of revenue from handling tax evaders will only occur during President Prabowo's administration. 

 

"This means the government has failed. So, the country will receive fresh funds from tax evader fines, but hopefully, this won’t happen again," he stated. 

 

Optimizing the Carbon Market  

 

Hashim noted that domestic forests absorbed 577 million tons of carbon dioxide equivalent between 2018 and 2020. This achievement is valued at approximately US$5.8 billion, based on a minimum carbon price of $10 per ton. 

 

In addition, the United Nations is currently verifying national carbon absorption for the 2021-2023 period, in collaboration with the government. The total potential carbon absorption under review is estimated at 600 million tons. 

 

Over the past six years, domestic carbon absorption has reached 1.17 billion tons, or nearly 200 million tons annually. Hashim calculates that the carbon market value from this achievement could reach Rp 190 trillion. 

 

Furthermore, Hashim pointed out that state revenue could increase by more than Rp 3 trillion annually by leveraging the domestic carbon market. He emphasized that the additional revenue from tax evader fines and the carbon market has not yet been included in the 2025 State Budget. 

 

“The government will offer this carbon absorption capability to various parties, including emitters and carbon-producing countries,” he explained. 

 

Original article here

This article is published in partnership with Katadata