The Directorate General of Taxes in Indonesia (DGT, or Direktorat Jenderal Pajak, DJP) is the Ministry of Finance unit that administers central government taxes: income tax, VAT and luxury-goods sales tax, stamp duty and certain land and building tax sectors. It registers taxpayers, receives returns and payments through the Coretax system, supervises compliance, audits and decides objections.
What is the Directorate General of Taxes?
The DGT is the national tax authority, operating as a directorate general within the Ministry of Finance (Kementerian Keuangan). It formulates tax policy and technical standards and runs day-to-day tax administration from its head office in Jakarta. Its portal, pajak.go.id, publishes regulations, forms and office addresses.
The DGT handles central taxes only. Regional taxes, such as the local tax on certain goods and services (which covers hotels and restaurants), motor vehicle tax and most land and building tax (PBB-P2), are collected by provincial and regency governments under Law No. 1 of 2022 on central-regional fiscal relations. Customs and excise sit with a separate unit, the Directorate General of Customs and Excise.
How is the DGT organised?
The head office sets policy and standards, while a nationwide network of regional and local offices deals with taxpayers.
That network was reorganised by Minister of Finance Regulation (PMK) No. 18 of 2026, signed on 17 March 2026. It consists of:
- Regional tax offices (Kanwil DJP), including a regional office for large taxpayers and the Jakarta Khusus (special) regional office, which supervise and handle objections.
- Tax service offices (KPP), where taxpayers are registered and supervised (types below).
- Tax service, counselling and consultation offices (KP2KP), serving areas without a KPP.
| Office type | Typical taxpayers | What it means for you |
|---|---|---|
| KPP Wajib Pajak Besar (large taxpayer offices) | Very large corporate groups by revenue and tax paid | Dedicated account representatives; intensive supervision and audit |
| KPP Khusus, including KPP Penanaman Modal Asing (PMA) | Foreign-investment companies (PT PMA) and other special taxpayer categories in Jakarta | Officers familiar with cross-border issues such as transfer pricing and tax treaties |
| KPP Madya (medium taxpayer offices) | Mid-to-large companies in a region | Closer monitoring than a Pratama office; regular data requests |
| KPP Pratama (primary offices) | Most companies, SMEs and individuals in a given area | The default office for registration, returns and routine supervision |
| KP2KP | Taxpayers in remote areas | Basic services and consultation |
A company does not choose its KPP. The DGT assigns it by location, size and category and may move a growing company, for example from Pratama to Madya. Units are listed in the DGT's office directory.
What does the DGT do for and with taxpayers?
The DGT's work with businesses follows the compliance cycle: registration, filing and payment, supervision, audit and dispute resolution. Each stage has its own documents and deadlines.
| DGT function | Key document or system | What the taxpayer does |
|---|---|---|
| Registration | NPWP (for individuals, the NIK) and Coretax taxpayer account | Register the company and directors; keep data current |
| Payment | Billing code in Coretax; tax deposit | Pay monthly income tax by the 15th of the following month |
| Filing | Monthly and annual returns (SPT) | File monthly income tax returns by the 20th; VAT by the end of the following month |
| Supervision | SP2DK (request for explanation of data) | Respond in writing within the deadline in the letter |
| Audit | Audit notice and assessment letters (SKP) | Provide books and records; attend the closing discussion |
| Dispute | Objection (keberatan) | File within three months of the assessment |
Annual income tax returns are due within three months of the end of the tax year for individuals (31 March for calendar-year taxpayers) and within four months for companies (30 April). See the DGT's reporting deadline page, our guide to how to file individual tax returns in Indonesia, and VAT in our VAT Indonesia guide.
What is Coretax and why does it matter?
Coretax is the DGT's core tax administration system, launched on 31 December 2024 and used for registration, returns, payments and services from January 2025. Nearly every interaction with the DGT now runs through it.
The legal basis is PMK No. 81 of 2024, which took effect on 1 January 2025. According to the DGT's announcement, it set a common payment date (the 15th of the following month) for several taxes, introduced the tax deposit and expanded pre-populated returns.
For companies, Coretax is also a control issue. A corporate account is run by a person in charge (PIC), normally the most senior registered officer, who grants roles to staff or advisers; documents are signed with an authorisation code that must be protected. Because invoices and withholding slips sit in one system, mismatches with counterparties' data surface quickly, often as an SP2DK.
How do SP2DK, audits and objections work?
An SP2DK is a written request for clarification, an audit is a formal examination of a taxpayer's books, and an objection is the taxpayer's first formal challenge to an assessment. They escalate in that order.
Compliance supervision, including SP2DK letters, visits and follow-up, is governed from 1 January 2026 by PMK No. 111 of 2025 on taxpayer compliance supervision. A case can close with a data correction or escalate to an audit; a documented SP2DK reply is usually the cheapest resolution.
If an audit leads to an assessment you disagree with, the objection rules require you to file within three months of the date the assessment was sent. The DGT must decide within 12 months of receiving the objection; if it does not, the objection is deemed granted. After the objection stage, disputes go to the Tax Court.
How should a foreign-owned company manage its relationship with the DGT?
Treat the DGT relationship as a standing compliance process with named owners, not a once-a-year filing exercise.
- Map your obligations for each entity: KPP, tax types, and monthly and annual deadlines.
- Control Coretax access: document who holds the PIC role and authorisation codes, and review this quarterly.
- Reconcile monthly: match VAT output and input, withholding slips and general ledger balances before filing.
- Keep a response file of contracts, transfer pricing documentation and invoices for quick SP2DK replies.
- Escalate early when an audit notice arrives, and track the objection deadline from the date of the assessment.
New investors can start with our overview of foreign companies in Indonesia. For structured support with filings, reconciliations and audit preparation, see JCSS Indonesia's tax compliance and audit readiness service.
Frequently asked questions
What does DJP stand for in English?
DJP stands for Direktorat Jenderal Pajak, usually translated as the Directorate General of Taxes (DGT). It is the Indonesian Ministry of Finance unit responsible for administering central government taxes such as income tax, VAT and stamp duty. Regional taxes are collected by local governments, and customs and excise duties by a separate directorate general.
Which tax office will my PT PMA be registered at?
The DGT assigns the tax office (KPP) based on the company's location, size and taxpayer category; the company cannot choose. In Jakarta, many foreign-investment companies are administered by a KPP Penanaman Modal Asing. Larger groups may be placed at a medium or large taxpayer office, and the DGT can transfer a company as it grows.
What is Coretax DJP?
Coretax is the DGT's core tax administration system, launched on 31 December 2024 and used from January 2025. Registration, e-invoicing, withholding slips, payments and tax returns are handled through it. Companies access it through a corporate taxpayer account managed by a registered person in charge, who assigns roles to employees or authorised advisers.
What should I do if I receive an SP2DK?
An SP2DK is a request from your tax office to explain data that appears inconsistent with your returns. Reply in writing within the deadline stated in the letter, with supporting documents such as invoices, contracts and reconciliations. A complete, timely answer often closes the matter; an ignored or weak reply can lead to an audit.
How long do I have to object to a tax assessment?
An objection must be filed within three months of the date the tax assessment letter was sent, in writing and in Indonesian, stating the amount of tax you believe is correct and your reasons. The DGT must issue a decision within 12 months of receiving the objection, or the objection is treated as granted.
When are annual tax returns due in Indonesia?
For calendar-year taxpayers, individual annual income tax returns are due by 31 March and corporate returns by 30 April, that is, three and four months after the tax year ends. The deadline can be extended by up to two months by notifying the DGT before it expires.
General information only, not legal or tax advice for your specific facts. Regulations change; confirm the current position with JCSS Indonesia before acting.