Finance Minister Purbaya confirms no tax target increase in medium term

“Regarding the government’s medium-term strategy to strengthen the state revenue base, we can convey that in the medium term the taxation strategy is directed at broadening the base rather than simply raising rates,” said Purbaya, responding to a view expressed by one of the DPR factions during the 25th plenary session of the fifth parliamentary session in Jakarta on Tuesday.

Purbaya explained that the broadening of the tax base will be pursued through the use of data and technology to reach the digital economy, the shadow economy and the informal sector.

Meanwhile, in the area of customs and excise, the government will strengthen revenue through the digitalisation of services and supervision, improved audits and enforcement, as well as the eradication of illegal imports and the circulation of illegal excisable goods.

These efforts will continue to be carried out while maintaining the investment climate, supporting exports and facilitating business activities.

As is known, in the first half of 2026, national tax revenue reached Rp1,035.7 trillion, or 43.9 per cent of the 2026 state budget (APBN) target. This achievement grew 24.6 per cent compared with the same period the previous year.

Previously, Purbaya estimated that tax revenue realisation for 2026 would reach Rp2,310.8 trillion, or around 98.8 per cent of the 2026 APBN target of Rp2,357.7 trillion.

Under this projection, tax revenue is expected to experience a shortfall of around Rp46.9 trillion against the APBN target. Even so, this shortfall is far smaller than that of 2025, which reached approximately Rp271 trillion.