Corporate Income Tax Jumps 23%, Purbaya: My Fears of Mass Bankruptcies Were Wrong

Finance Minister Purbaya Yudhi Sadewa acknowledged he had initially feared that Indonesian companies were starting to go bankrupt en masse after observing sluggish growth in corporate income tax (PPh Badan) receipts in April 2026. However, following a surge in tax payments in May 2026, with realised revenue reaching Rp 834.4 trillion, up 22.1% compared to the same period last year of Rp 683.3 trillion, Purbaya stated his earlier concerns were mistaken. “My previous worry that people were going bankrupt because their payments were small turned out to be wrong,” Purbaya said during a state budget press conference at the Ministry of Finance headquarters in Jakarta on Friday (5/6/2026). According to Purbaya, his erroneous concerns about widespread bankruptcies were disproven by the performance data of Corporate Income Tax and Corporate Income Tax Deposits, which reached Rp 167.6 trillion by the end of May 2026 with growth of 23.9%, a sharp increase compared to the April 2026 realisation which grew by only 5.1%. Furthermore, personal income tax and PPh 21 were said to have still grown by 26% with a realisation of Rp 123.1 trillion, continuing the rapid growth seen in April 2025 of 25.1%. Final Income Tax, PPh 22, and PPh 26 grew by 5.2% with a realisation of Rp 138.7 trillion, slightly lower than the April 2026 growth rate of 98%. Meanwhile, VAT and Luxury Goods Sales Tax still managed to record growth of 41.3% with a value of Rp 315.7 trillion, faster than the previous month’s growth of 40.2%. Only the other sectors contracted by 5% with a realisation of Rp 89.3 trillion. “This demonstrates that there is an economic improvement,” Purbaya asserted.