{
    "success": true,
    "data": {
        "id": 1925919,
        "msgid": "2027-vat-target-reaches-rp1-126-trillion-a-sign-of-recovering-indonesian-purchasing-power-1787032304",
        "date": "2026-08-18 11:30:59",
        "title": "2027 VAT Target Reaches Rp1,126 Trillion, a Sign of Recovering Indonesian Purchasing Power?",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian government has set a target of Rp1,126.1 trillion for Value Added Tax (VAT) and Luxury Goods Sales Tax (PPnBM) revenue in 2027, representing 13.4% growth over the 2026 outlook. VAT and PPnBM receipts are considered key indicators of purchasing power and domestic demand, having fluctuated in recent years with a contraction in 2025 due to higher restitution. The government expects a rebound in 2026 and continued optimisation in 2027 through stronger tax administration and digital data integration.",
        "content": "<p>The government is targeting Value Added Tax (VAT) and Luxury Goods\nSales Tax (PPnBM) revenue of Rp1,126.1 trillion, or growth of 13.4%\ncompared with the 2026 outlook, according to the Financial Note document\nquoted on Tuesday (18\/8\/2026). VAT and PPnBM are important indicators\nreflecting the strength of purchasing power, domestic demand and the\ndynamics of national economic activity, given their close link to\nhousehold consumption, production, trade and imports.<\/p>\n<p>VAT and PPnBM receipts grew by 24.6% in 2022, driven by a stronger\neconomic recovery, rising public consumption and the implementation of\ntax reform through the Harmonisation of Tax Regulations Law, which\nstrengthened the revenue base. The performance remained positive in 2023\nwith growth of 11.1%, supported by maintained domestic consumption and\nnational economic activity, reflecting still-strong public purchasing\npower amid rising global economic uncertainty.<\/p>\n<p>In 2024, VAT and PPnBM still grew by 8.5%. Although the pace was more\nmoderate than the previous year, the performance was still underpinned\nby maintained domestic consumption as the main driver of the national\neconomy. VAT and PPnBM receipts contracted by 4.4% in 2025 compared with\nthe previous year, mainly due to higher restitution realisation towards\nthe end of the year, which depressed net receipts even though economic\nactivity and domestic consumption remained relatively well\nmaintained.<\/p>\n<p>Alongside improving national economic activity, VAT and PPnBM\nreceipts are expected to strengthen again in 2026 with growth of 25.4%\ncompared with 2025. This growth is supported by increased production,\ndistribution, trade and consumption of goods and services, which form\nthe main base for VAT and PPnBM collection. In addition, stronger tax\nadministration and optimisation of tax data utilisation also support\nimproved revenue performance.<\/p>\n<p>Taking into account the still-strong outlook for domestic\nconsumption, developing production and trade activity, and the\nsustainability of national economic transformation, the government will\ncontinue to optimise VAT and PPnBM receipts in 2027. These efforts will\nbe carried out through strengthening tax administration, increasing the\nuse of technology and integration of tax data, improving taxpayer\ncompliance, and expanding the tax base adaptively in response to\ndevelopments in business models and the digital economy.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/2027-vat-target-reaches-rp1-126-trillion-a-sign-of-recovering-indonesian-purchasing-power-1787032304",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}