Jakarta, Aug. 16 -- The Indonesian government is preparing a Compliance Improvement Program (CIP) as part of its strategy to tackle the shadow economy, while ensuring that micro, small, and medium enterprises (MSMEs) are not unfairly burdened.

Finance Minister Sri Mulyani Indrawati said the government aims to design compliance measures for both the formal and informal sectors in a way that guarantees fair taxation for all taxpayers.

"Thus, we will not tax them beyond their capacity," she emphasized during a press conference on the 2026 Draft State Budget in Jakarta on Friday.

For informal-sector MSMEs, the government will prioritize tax facilitation to encourage voluntary compliance.

Under Law No. 7 of 2021 on the Harmonization of Tax...