Jakarta, Feb. 13 -- Indonesia's National Economic Council Chairman Luhut Binsar Pandjaitan is pushing for a technology-based tax reform to widen the tax base and allow gradual reductions in tax rates.

Speaking in Jakarta on Friday, Luhut said digital tools could broaden the tax base while improving system efficiency, reducing manual interventions that often create opportunities for revenue leakage.

Through digital reforms, practices of underreporting revenue to stay below Rp5 billion-the threshold for small and medium enterprise (SME) tax eligibility-can be minimized, he said, noting such practices are common.

A broader tax base, he added, would increase state revenue potential and allow for phased adjustments in tax rates over time. ...