Minister Purbaya Reveals Strategy to Expand Tax Base and Boost State Revenue

Finance Minister Purbaya Yudhi Sadewa has emphasised that the government will intensify efforts to expand the tax base in order to boost state revenue. Speaking during the 25th DPR Plenary Meeting for the Fifth Session Period in Senayan, Jakarta, on Tuesday, 14 July 2026, he stated that this approach is part of the government’s medium-term strategy to strengthen revenue without increasing tax rates. “In the government’s medium-term strategy to strengthen the state revenue base, the taxation strategy is directed at expanding the tax base,” Purbaya said. He explained that the strategy would be pursued through the utilisation of data and technology to reach the digital economy, the shadow economy, and the informal sector. In the customs and excise sector, the government will bolster revenue through the digitalisation of services and supervision, enhanced audits and enforcement, and the eradication of illegal imports and the circulation of illicit excisable goods. These efforts will be carried out while maintaining the investment climate, supporting exports, and facilitating business activities. It was noted that in the first half of 2026, national tax revenue realisation reached Rp1,035.7 trillion, or 43.9 percent of the 2026 State Budget target. This achievement represents a 24.6 percent growth compared to the same period the previous year. Purbaya previously estimated that tax revenue realisation for the full year 2026 would reach Rp2,310.8 trillion, or approximately 98.8 percent of the APBN target of Rp2,357.7 trillion. Based on this projection, tax revenue is expected to experience a shortfall of around Rp46.9 trillion from the target, a figure significantly smaller than the Rp271 trillion shortfall recorded in 2025.