The Ministry of Finance is currently intensifying strategic steps to address the phenomenon of millions of 'zombie businesses' spread across the country. This term refers to business entities or households that have operationally stopped running, but administratively remain registered as active because they have not completed dissolution procedures or tax identification number (NPWP) revocation.
Tax authority data records at least 1.1 million taxpayers falling into this category. This group consists of companies undergoing liquidation, entities that have abandoned their business domicile without notice, and business actors who have fulfilled their tax obligations but neglected the administrative closure of their business registration certificates.
The challenge in handling this backlog of data is driven by various obstacles, ranging from a lack of processing resources and difficulty tracing legal representatives of companies, to indications of false information used during business establishment. Without comprehensive cleanup action, this condition is assessed to lower the quality of national tax data and hinder business flexibility.
As a solution, the Ministry of Finance has proposed Draft Bill No. 108/2025 on Tax Administration. This regulation is designed to strengthen risk-based management and digital transformation, where field inspections will focus only on high-risk cases. In addition, the government proposes that the tax authority have the power to initiate bankruptcy proceedings for businesses proven not to operate at their registered address for three years or possessing unpaid tax debts over the same period.
To support these efforts, a 'Tax Identification Number Cleanup' campaign has been launched. This program aims to standardize the database by targeting three main groups: entities undergoing dissolution, businesses that have exited the market without formal procedures, and cases of legal identity misuse. Inter-agency coordination, including with security forces, will be tightened to prevent potential tax invoice manipulation and other economic crimes.
