Finance Minister to Improve Coretax System to Narrow 2026 Tax Revenue Shortfall

Finance Minister Purbaya Yudhi Sadewa has stressed that, in order to narrow the widening shortfall between tax revenue realisation and the target in 2026, his ministry will continue to improve the Directorate General of Taxes’ Coretax system. The Ministry of Finance estimates that tax revenue will reach Rp 2,310.8 trillion by year-end, equivalent to 98 percent of the Rp 2,357.7 trillion ceiling. This means there is a gap of Rp 46.9 trillion from the target set in the 2026 State Budget. Purbaya admitted that his ministry is indeed relying on Coretax as a strategy to boost tax revenue. In the first semester of 2026, tax receipts were recorded at Rp 1,035.7 trillion, growing 24.6 percent compared to the realisation of Rp 831.3 trillion in the same period last year. Therefore, Purbaya expressed optimism that the performance improvement will also be supported by tax reform strategies, including the overhaul of the Coretax system. “We are improving Coretax again. It is already good, but recently there was a slow interface again, so we are fixing it. We will also monitor the performance of every tax office,” Purbaya said at the House of Representatives in Senayan, Jakarta, on Tuesday, 7 July 2026. On the other hand, Purbaya stressed he will take a firmer stance against Directorate General of Taxes employees, especially if any violate the code of ethics or commit misconduct. According to him, organisational reform is also a strategy to increase state revenue. Purbaya believes there has been improvement among internal tax office staff. However, if there are still employees whose performance is suboptimal, he is open to furloughing them. “Now I am also allowed to furlough people. I will furlough them if they do not work well. But, on average, things are better now,” he said. In addition to tax revenue, customs and excise income is estimated to reach Rp 320.6 trillion by the end of 2026, equivalent to 95.4 percent of the Rp 336 trillion ceiling. Overall, state revenue is projected to exceed the 2026 State Budget target, with a forecast of Rp 3,208.1 trillion, or 101.7 percent of the Rp 3,153.6 trillion ceiling.