Finance Minister Assures No New Taxes, Public Purchasing Power Protected

The government has assured that it will not impose new tax burdens in the near term. This step is taken to preserve public purchasing power while providing certainty for business actors amid an economy that has not fully recovered.

Finance Minister Purbaya Yudhi Sadewa emphasised that current fiscal policy is still focused on strengthening the domestic economy, particularly from the aspect of public consumption, which serves as the main pillar of growth.

“Public spending is the largest engine of national economic growth,” he stated during a dialogue in Lembang, Bandung, on Tuesday (28/4/2026).

For the public, the certainty of no tax increases provides breathing room amid rising price pressures and needs. The government prefers to improve tax compliance and close leakages rather than raising rates.

On the other hand, the government also highlights the importance of a conducive business climate down to the regional level. Synergy between the Ministry of Finance and law enforcement apparatus is being strengthened to reduce investment barriers often complained about by business actors.

Purbaya stated that the public and business actors can report obstacles faced so they can be promptly addressed. This effort is expected to maintain investor confidence while opening new job opportunities.

This policy signals that the government is still holding back on fiscal tightening measures. The main focus is directed towards maintaining economic growth around six per cent before considering tax rate changes.

With this condition, public consumption space is expected to remain protected, while the business sector gains certainty to continue expanding.