Denies Tariff Increase, Purbaya Focuses on Boosting Compliance and Plugging Tax Leaks

Jakarta – Finance Minister Purbaya Yudhi Sadewa has emphasised that the government will not raise tax rates or impose new taxes in the near future, pending improvements in economic conditions and public purchasing power.

He reiterated this stance during the National Dialogue at Sespimti Polri, themed ‘The Impact of the US-Israel vs Iran Conflict on Indonesia’s Economy and Its Implications for Domestic Security’, held in Lembang, Bandung, West Java, on Tuesday, 28 April 2026.

Purbaya has maintained this position since taking office as Finance Minister, stating there will be no tax rate increases until the economy is sufficiently robust or grows at around 6 per cent.

“The government’s current focus is on improving compliance and closing tax leakages, not raising rates,” Purbaya said in his statement on Wednesday, 29 April 2026.

Regarding the global situation, Purbaya noted that economic uncertainties occur annually, not only in Indonesia but worldwide.

Global uncertainties, such as geopolitical conflicts in the Middle East, high US interest rates, and a slowing world economy, seriously impact Indonesia’s economy through pressure on the rupiah’s exchange rate, financial market volatility, and inflation risks.

However, Indonesia is mitigating these risks by strengthening domestic consumption, investment, and policy synergies to maintain growth.

“Public spending is the biggest engine of national economic growth,” Purbaya stated.

In reality, Purbaya acknowledged that Indonesia’s economy is supported by consumption, investment, and trade.

“Therefore, we will continue to support the private sector to keep growing, one of which is through the P2SP task force or debottlenecking,” he added.