Friday, November 6, 2026

Old Tax, New Acronym

There are three things that can unite the Indonesian nation: football, the chilli price, and news of a tax that leaks before its explanation is ready. This week, the third took centre stage. I watched it unfold from my regular bench in the coffee shop, paying for my coffee with a QRIS code whose sticker had gone limp from being scanned so often. The coffee was still warm, but the conversation around me was hot enough to brew two cups at once.

It all began at an event in Jakarta. A figure from the business world, the chair of the advisory council of the Indonesian Chamber of Commerce and Industry, said that the government would extend the collection of digital tax from 9 November 2026. The sentence was short, firm and highly shareable, three qualifications for a place in the family group chat. And within hours it had made a journey few policies ever make: from the conference room to the phones of the neighbours, and then to the hands of an aunt who typed in capital letters that one must be careful, because transfers to a lodger would be taxed. The rumour of a tax on bank transfers spread as quickly as gossip about a celebrity wedding, and the cashier at my regular shop even pinned up a small note reading paying cash is safer, a local regulation issued faster than any ministerial decree.

The official explanation came later, wearing a grand name. On Monday, 2 November, the Directorate General of Taxes, through its director of outreach, explained that what was meant was the System for Collecting Tax on Foreign Digital Transactions, abbreviated SPP-TDLN. The acronym sounds like the codename of an intelligence operation, yet it concerns the collection of value-added tax on digital goods and services from abroad, as set out in Finance Minister's Regulation No. 49 of 2026. According to the clarification, it is not a new tax, the VAT rate is unchanged, and not every foreign transaction is taxed. Personal fund transfers and remittances are not automatically caught by anything. If the VAT on a transaction has already been collected by a designated e-commerce operator, it will not be collected again, and members of the public need neither pay nor report it themselves.

The public breathed a sigh of relief, then realised they had just learned an acronym merely to make sure their snack money was safe. In a country where reciting the national principles by heart is not always fluent, we now have extra homework called SPP-TDLN. The national curriculum never lacks for burdens. And amid the relief came news that made the whole drama funnier still: according to the explanation, the system had in fact been running since 25 September. In other words, the policy had been sitting quietly in its chair for well over a month without anyone panicking, until someone announced it as though it had just been born. Rather like a guest who has already eaten at the café but is only introduced to the owner when the bill arrives.

The explanation itself, to be fair, makes decent sense. Until now, digital services from across the water, from streaming subscriptions to apps, have been enjoyed by residents here with VAT collected not always tidily, while local businesses have long remitted theirs dutifully. It is like two cafés side by side: one diligently issues tax receipts, while the other sells through a back window with no records at all. The aim of levelling the playing field, so that domestic entrepreneurs do not compete with one leg tied, deserves support. I am no tax adviser myself, and anyone who wants the details would do well to consult the Directorate General of Taxes directly. It is only that the pitch was declared level after the spectators had already assumed it was the stands that would be taxed.

Here lies the real problem. It is not in the formula, nor in the rate, but in the sequence. A good policy should be like a dinner: the dish served first, the recipe explained afterwards. Too often we are handed the recipe first, leaked early, followed by suspicions that the kitchen is preparing something sinister, while the dish arrives last bearing a label that reads Please do not panic. That label itself is enough to cause panic. History records that nobody has ever calmed down after hearing please stay calm. It is rather like an airport official saying there is nothing to worry about while running.

So the coffee shop, once again, becomes the most honest forum for policy. An app-based motorcycle-taxi rider, who happens to understand the flow of money in this city better than most, said that he had no objection to paying tax. He simply wanted to know which tax he was paying, where it went, and why he had heard about it in a group chat before any official announcement. His friend nodded, sipped his coffee, and added that if every government explanation were written as plainly as a car-park ticket, this country would long ago have become world champion of public trust. That remark may be too simple for an academic paper. But that is exactly why it is honest.

It is only fair to admit that the clarification came within days, not months, and that deserves credit. Yet even the most efficient fire brigade still arrives after the neighbours have been busily throwing buckets of their own. Announcement and explanation ought to come as a package, like coffee and sugar stirred together, not sugar arriving five minutes later, already cold. In communication, the first word always holds the advantage: it arrives first, and whoever follows must chase it, carrying corrections.

Heroes' Day is only a few days away. Perhaps this is the moment to widen the meaning of a hero: not only those who once took up bamboo spears, but also those who today can read three clarifications, two press releases and one fact-check, and still pay for their coffee by QRIS with a calm heart. They receive no medal. At best, a thousand rupiah in change that they never get round to collecting.

And if one day the government manages to explain a policy before the rumours spread, the public stands ready to award the highest honour they possess: not panicking. I finished my coffee that evening and left a little sediment at the bottom of the glass, for even sediment knows that trust is built from the right sequence, not from a grand acronym.

And should tax one day truly add to the people's burden, there is no cause for alarm, for the nation already has the most affordable way out and, so far, one free of VAT: to sing. All that is needed is a spoon for a microphone, a coffee glass for an audience, and one French ballad from the sixties, L'amour est bleu, said to have been performed by Claudine Longet. With modest voices and French pronunciation composed entirely on instinct, we shall render it with solemnity, from a hopeful blue to the grey we know so well on opening a bill. Nobody will understand every word, but everybody will grasp the feeling. Only one small prayer remains: that the singing in the coffee shop does not soon acquire a new acronym, because in this country a new acronym always arrives faster than its explanation.
Bleu, bleu, l'amour est bleu
Berce mon cœur, mon cœur amoureux
Bleu, bleu, l'amour est bleu
Bleu comme le ciel qui joue dans tes yeux

Comme l'eau, comme l'eau qui court
Moi, mon cœur court après ton amour

Gris, gris, l'amour est gris
Pleure mon cœur lorsque tu t'en vas
Gris, gris, le ciel est gris
Tombe la pluie quand tu n'es plus là


English rendering:
Blue, blue, love is blue
Cradles my heart, my heart in love
Blue, blue, love is blue
Blue like the sky that plays in your eyes

Like the water, like the water that flows
I, my heart runs after your love

Grey, grey, love is grey
My heart weeps when you go away
Grey, grey, the sky is grey
The rain falls when you are no longer there

The Ballad of Mr Pantomime

My regular coffee shop stands at the end of a slippery stone alley, and the alley was bequeathed by our ancestors with one acoustic marvel: whatever is shouted at its mouth comes back from the far end ten times louder. The locals call it Echo Alley. The coffee is excellent, but chatting there takes courage, since even a whisper can return as a public announcement. The shop's wise owner has hung thick cloth on the back wall. The architect of the alley clearly never imagined what his creation would do to community life.

From this marvel the residents drew a law of nature taught from nursery school onwards: the loudest must be the most truthful. A child who shouts that he did not steal the biscuit is thought more honest than one who whispers a confession, even if crumbs are still clinging to the shouter's lips. Doctors no longer ask where it hurts, only how loudly the patient declares himself well. I stirred my sugar and reflected that the whole of this alley's learning rests on a single unit of measurement, the decibel.

Yet behind the shop, beyond a door padded with thick cloth, lies a hushed carpeted room with a long, dark-varnished table. There sits a Judge named Scales. He has no loudspeaker, no account and no followers, a condition which the people of Echo Alley regard as severe poverty. He has only one irritating habit: he always asks what the evidence is.

That afternoon the hushed room received a visitor whom I shall call Mr Pantomime, since acting is his trade. His clothes were immaculate, his voice deep, and he knew precisely when to draw a long breath so that onlookers would think him bearing the sorrow of the whole nation, when in fact he was holding back a sneeze. He was asked to raise his hand and swear, and he did so flawlessly: elbow bent, fingers together, eyes fixed on the ceiling as though seeking the blessing of the plaster. Then came a lovely tale, layered upon layer, complete with a twist in the middle and characters who happened to be unavailable for questioning. I peeped through the crack in the door, glass in hand, and thought that if courtrooms gave out prizes, that script would win best original story. Judge Scales took notes calmly with a thin smile. Nothing in a courtroom is more worrying than that smile, for it means he already holds the file.

Thinkers have long warned that an oath is not an opening line to be skipped like an advertisement. It is a pledge: a person stakes his honour so that his words may be believed, and part of that honour in truth belongs to the court and to everyone who still believes that testimony has a price. That is why the new Criminal Code, in force since 2 January 2026, deals with false statements under oath in Article 373 of Law No. 1 of 2023, replacing Article 242, which has now retired to enjoy its old age in the law library. The core remains the same: what is punished is deliberate falsehood, not honest forgetfulness. Unfortunately, as we know, Mr Pantomime never forgets his script.

On leaving the hushed room, Mr Pantomime faced a bitter fact: his acting talent was worth nothing in there. The judge was unmoved by wistful gazes into the distance or dramatic pauses of three seconds. So he walked to the mouth of the alley to call on the only institution that still treats falsehood as a product: the Applause Factory. It is staggeringly efficient. On the first floor, scriptwriters turn out one magic sentence in forty variations. On the second, thousands of residents whose faces are never seen, with profile pictures of cats, flowers and clenched fists, copy that sentence with the devotion of medieval scribes. On the third, an enormous machine converts the copies into the thing Echo Alley loves most: noise that looks like conviction. The fourth floor is the canteen, where truth is often overheard, since the staff love to gossip.

The staff are paid per shout, and they never ask what the script says, just as a postman does not read the love letters he delivers. They cry hoax at whatever the boss points to, slander at anyone carrying a file, and persecution even at the weather if the weather proves uncooperative. It is said that one employee once yelled at his own watch merely because it showed he was late. A famous thinker once distinguished the liar from the bluffer: the liar still respects the truth, for he knows what it is and hides it, whereas the bluffer does not care, since only the impression matters. The Applause Factory is a monument to the second kind, a place where truth is not an enemy but simply not invited. Logicians have a name for the fallacy that fuels this factory, the belief that something is true because many people believe it. Echo Alley's version is more refined: many believe it, as proved by the many who shout, and the shouters happen to be our own staff. Picture a restaurant declaring its cooking the finest because all its chefs agree.

Meanwhile, in another corner of the alley, a quarrel blazed over a single sheet of paper said to certify that someone had studied, been examined and passed. Nearly everyone had an opinion on that paper, and nearly all rested on visual inspection: the shade of the paper, the choice of typeface, the slant of the signature. Suddenly every resident became a document forensics expert, armed with a magnifying glass and a cousin who once worked at a print shop. Amid the clamour Mr Pantomime unfurled the sheet and cried that it was plainly written there. The crowd cheered, forgetting the simple distinction every teacher teaches: paper proves that something was once printed, not that its contents are true. To show a sheet of paper as proof of its own authenticity is like holding up a mirror to prove that the reflection is not lying.

An academic record is kept not on the paper but in the university archive, the graduation database, and the hands of an official with a stamp and the patience to use it. The way out is therefore single: official verification by the issuing institution, with no need for the neighbours' views, an opinion poll or a hashtag. If the document is genuine, the answer arrives in a matter of clicks, and the whole commotion disperses like mist in the sun. If not, the law has prepared a room with the door number already on it: Article 272 of the same Law threatens forgery of a degree certificate with up to six years' imprisonment or a category V fine. This is not a matter of vanity but of trust, for every honest graduate who ever sat up in the library on a fourth packet of instant noodles is entitled to believe in the system he went through. So the oddest part of the uproar is not whether the paper is genuine, but why those most certain of its authenticity seem busiest hiring loudspeakers rather than opening the archive door. A rightful owner seldom employs so many guards for the front garden, least of all ones who can shout in forty variations of a sentence.

Then came the day the Applause Factory reached peak production. Overnight, the hashtag defending Mr Pantomime climbed to the top of the loudest list in the whole alley. Thousands of copies of one sentence droned from end to end, bounced back, grew stronger and returned again, until the residents were convinced that a sound so big must be the voice of truth. Some even wept with emotion, including two scriptwriters who had forgotten the sentence was their own creation. Mr Pantomime then approached the hushed room with his chest thrust out, carrying a phone full of numbers: fifty thousand thumbs-up, two hundred thousand shares, a million views. He set it on Judge Scales's table like a trader unveiling his best wares, complete with a smile rehearsed in the mirror. The judge gazed at the screen for a long time. He was neither angry nor amused, though the corner of his mouth trembled slightly. He merely asked the cruellest question ever heard in any courtroom: where is the document, sir?

The phone chimed and the thumbs kept multiplying, yet in that thickly carpeted room there was no echo. Every shout from the alley stopped at the threshold like a flood meeting a dyke. In that place, numbers have no vote. Only evidence under the rules of procedure may speak, and there is no category for how many are angry, how viral it has gone, or whether Uncle so-and-so has shared it. Mr Pantomime grasped the paradox his factory had never taught him: noise can win an election over people's feelings, but it can never win a case against reality. Feelings can be coaxed, bought and herded, whereas reality does not care who is bidding.

From all this I sipped my coffee, which was growing cold, and drew a few conclusions. An oath is not a performance; it is the one moment when a person's words are given collateral, and so it cannot be withdrawn with the excuse that it was only strategy. If oaths may be worn like costumes, someone will soon swear in a clown suit. Nor is a crowd evidence, for a thousand accounts asserting one thing are no more convincing than a single document that can be checked, and when help must be bought to make a claim sound organic, the claim is admitting it lacks sincere defenders. Good food seldom needs a thousand people to call it good. As for paper, it is not truth but a door to truth whose key is held by the competent institutions. Whoever displays the door while padlocking the way in, then blames the guest for failing to enter, is performing a worn-out farce.

It is said that after these events the people of Echo Alley slowly learned a bitter lesson: however loud, an echo always dies at the far end of the alley. It carries nothing but itself. What remains once the noise subsides is an honest silence, in which Judge Scales still sits, still takes notes, and still asks questions in a voice that never rises by a single octave. Some residents stopped counting thumbs and began counting evidence. Others went on shouting, for shouting is a habit hard to break, rather like smoking but with vocal cords. The applause factories lost customers once people realised they had been paying dearly for something free all along, namely plain honesty. Two floors of the factory are now let out as a café, and its canteen remains the most honest of all.

As for Mr Pantomime, history does not record how his story ended. All that is recorded is that the cheapest way out of the whole mess comes down to two sentences: if it is true, show the proof, and if it is false, say sorry. And one more thing, no less important: send the troops home, for they have not yet had lunch. I finished my coffee and left the grounds at the bottom of the glass, for even grounds know they never lie about what remains. Every character in this coffee-shop tale is a pure invention, and the legal fate of anyone is decided by a court, not by the number of thumbs.