InfoSAWIT, JAKARTA – Indonesia's Directorate General of Taxes (DGT) has intensified its tax enforcement efforts by seizing assets belonging to a palm oil and vegetable oil company over unpaid tax liabilities totaling Rp42 billion, highlighting the government's continued commitment to improving taxpayer compliance.
According to DDTCNews, as reported by InfoSAWIT on Monday (July 6, 2026), the seizure was carried out by the Semarang Medium Tax Office II (KPP Madya Dua Semarang) against PT IES. The confiscated assets include land, buildings, factory facilities, and storage tanks located in Bandar Lampung, Lampung Province.
Abiyanto, a tax bailiff at KPP Madya Dua Semarang, said the enforcement action was taken after the company failed to settle its outstanding tax obligations despite receiving formal warning letters and tax collection orders issued by the tax authority.
"As the tax debt remained unpaid after the due date, we proceeded with the seizure of the taxpayer's assets as part of the active tax collection process in accordance with prevailing regulations," Abiyanto said.
The seizure forms part of Indonesia's active tax collection mechanism stipulated under Law No. 19 of 1997 concerning Tax Collection by Distress Warrant, as amended by Law No. 19 of 2000. Under the legislation, tax officials are authorized to issue a Seizure Order (SPMP) if outstanding tax liabilities remain unpaid within 2 x 24 hours after a tax collection warrant has been officially served.
Under the legal framework, seized assets serve as collateral for unpaid tax obligations. Should the taxpayer continue to default, the assets may subsequently be auctioned in accordance with applicable regulations to recover the outstanding liabilities.
Meanwhile, Nanda Andito, Head of the Audit, Collection, and Valuation Section at KPP Madya Dua Semarang, emphasized that asset seizure is an important legal instrument designed to strengthen tax compliance while ensuring fairness for taxpayers who fulfill their obligations.
He expressed hope that the enforcement measure would create a deterrent effect for delinquent taxpayers and encourage greater voluntary compliance across the business community.
The case underscores the Indonesian government's ongoing efforts to optimize state revenue through active tax collection measures targeting non-compliant taxpayers, including companies operating in the palm oil plantation and vegetable oil processing industries. (T2)
