At least one in four Indonesian firms evaded tax last year, a World Bank survey found, citing perceptions of widespread tax avoidance and complex tax administration. The findings, featured in the bank’s December Indonesia Economic Prospects report, also noted that Indonesia conducted fewer audits per million people from 2018 to 2021 than similar-income peers. The World Bank’s analysis suggests inefficiencies in Indonesia’s economy, an issue highlighted by President Prabowo Subianto. After taking office in October, Prabowo instructed the finance ministry to bolster state revenue and consider new sources. He aims to implement fiscal reforms, improve collections, and embrace innovative financing to reach 8% growth. Still, the World Bank forecasts 5.1% growth in 2025 and 2026, with risks from geopolitical and trade tensions and delayed reforms.