JAKARTA, August 7, 2026 – The Indonesia Fair Tax Forum (Forum Pajak Berkeadilan Indonesia/FPBI) calls on the Government of Indonesia to take a more active and assertive position during the Fifth Session of the Intergovernmental Negotiating Committee (INC-5) on the United Nations Framework Convention on International Tax Cooperation.
INC-5 is being held from 3–13 August 2026 at the United Nations Headquarters in New York. This session marks a critical stage in the negotiations, as countries begin discussing the draft convention text and the first two protocols on the taxation of cross-border services and the prevention and resolution of tax disputes. FPBI views the UN Tax Convention as a vital opportunity to reform the international tax system, which has long failed to provide equitable participation and benefits for developing countries.
“Indonesia’s participation alone is not enough. The government must come with a clear position to strengthen developing countries’ taxing rights, protect Indonesia’s domestic tax base, and ensure that the convention delivers rules that are practical and enforceable,” said Victoria Fanggidae, Executive Director of The PRAKARSA and Coordinator of FPBI.
Stopping the Erosion of Indonesia’s Tax Base
FPBI highlights the significant revenue losses caused by profit shifting and the use of tax havens. According to Tax Justice Network (2025), an estimated IDR 1,126 trillion in corporate profits was shifted offshore between 2016 and 2021, resulting in approximately IDR 273 trillion in lost tax revenue.
FPBI argues that these losses demonstrate why the UN Tax Convention is directly linked to Indonesia’s ability to protect its tax base and expand its fiscal space to finance healthcare, education, social protection, inequality reduction, and climate action.
The Convention Must Deliver Real Change
FPBI believes the UN Tax Convention must become an instrument capable of strengthening the international tax system in a meaningful and equitable way, rather than merely setting out broad principles. Without operational provisions, clear obligations, and effective implementation mechanisms, the convention risks failing to curb cross-border tax avoidance and strengthen countries’ capacity to mobilize domestic revenues for sustainable development.
“The UN Tax Convention is not merely about drafting international tax rules. What is truly at stake is every country’s ability to secure sufficient fiscal space to finance education, healthcare, social protection, and climate action. Therefore, the success of the convention should not be measured solely by reaching agreement on a legal text, but by its ability to create a fairer, more transparent, and effectively enforceable international tax system,” said Meliana Lumbantoruan, Deputy Director of Publish What You Pay (PWYP) Indonesia and member of the Coordinating Committee of the Tax and Fiscal Justice Alliance (TAFJA).
Five Priorities Indonesia Should Champion
FPBI urges the Government of Indonesia to advocate at least five key priorities during INC-5.
First, establish a Global Asset Register to track cross-border asset ownership and combat tax avoidance and illicit financial flows.
Second, adopt Public Country-by-Country Reporting (Public CbCR) to enable the public and developing countries to access information on multinational corporations’ revenues, profits, economic activities, and taxes paid in each jurisdiction.
Third, promote an inclusive Automatic Exchange of Information (AEOI) system that guarantees equal access, transitional arrangements, technological support, and non-reciprocal mechanisms for countries with limited administrative capacity.
Fourth, strengthen beneficial ownership transparency through nationally maintained but globally interconnected beneficial ownership registries to reveal the true owners of companies, assets, trusts, and other legal arrangements.
Fifth, ensure that the UN Tax Convention includes a dedicated provision or article on Tax and Extractives.
“For Indonesia, as a country rich in natural resources, this agenda is particularly important because every extractive activity permanently depletes natural resources. At the same time, tax avoidance and profit shifting continue to erode public revenues that should instead be used to support national development and a just energy transition,” added Meliana.
FPBI also calls on Indonesia to advocate for a fairer allocation of taxing rights in favor of countries where economic activities, production, labor, natural resources, and markets are located.
Indonesia’s Leadership Is Needed in ASEAN
FPBI encourages Indonesia to build stronger coordination with developing countries, particularly within ASEAN. Based on FPBI’s observations of previous negotiation sessions, most ASEAN countries have yet to participate actively, while other regional groups have openly advanced their shared interests.
As one of the region’s largest economies, Indonesia is well positioned to strengthen the collective voice of developing countries in the negotiations.
“As the current President of the UN Human Rights Council, and as the country that initiated South-South solidarity through the 1955 Asian-African Conference, Indonesia has an important role to play in advancing a fair and binding global tax system. Ensuring that international tax rules do not enable the exploitation of other countries is essential for building a more just and balanced global order,” said Siti Khoirun Ni’mah, Executive Director of INFID.
At the national level, FPBI also calls on the Government of Indonesia to publicly disclose the positions, priorities, and minimum negotiating objectives pursued by its delegation. The government should meaningfully engage civil society organizations, academics, trade unions, and affected communities before and after each negotiation session.
“International tax negotiations should not be treated as closed technical discussions. Their outcomes directly affect state revenues and the financing of people’s fundamental rights. Indonesia’s negotiating position must therefore be transparent, open to public debate, and subject to public oversight,” Victoria concluded.
About the Indonesia Fair Tax Forum (FPBI)
The Indonesia Fair Tax Forum (Forum Pajak Berkeadilan Indonesia/FPBI) is a coalition of civil society organizations advocating for a fair, progressive, and transparent tax system as a foundation for fiscal sovereignty and economic justice in Indonesia.
FPBI consists of The PRAKARSA; International NGO Forum on Indonesian Development (INFID); Publish What You Pay (PWYP) Indonesia; Indonesia for Global Justice (IGJ); YAPPIKA (Foundation for Strengthening Participation, Initiative and Partnership of Indonesian Society); Penabulu Foundation; Seknas FITRA; Transparency International Indonesia (TII); and Puskaha Indonesia.
Media Contacts
- Muhammad Pandu (The PRAKARSA) – mpandu@theprakarsa.org
- Meliana Lumbantoruan (PWYP Indonesia) – meliana@pwypindonesia.org
- Siti Khoirun Ni’mah (INFID) – nikmah@infid.org