Minister Purbaya Says Indonesia Will Not Raise Tax Rates

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa said the government will not raise tax rates in the medium term, instead focusing on increasing state revenue by expanding the tax base.

“Regarding the government’s medium-term strategy to strengthen state revenue, we can say that the tax strategy will focus on expanding the tax base rather than simply increasing tax rates,” Purbaya said during the 25th plenary session of the fifth legislative period at the House of Representatives (DPR) in Jakarta on Tuesday.

Purbaya said tax base expansion would be carried out through the use of data and technology to reach the digital economy, the shadow economy, and informal sectors.

Government Eyes Wider Tax Base

In the customs and excise sector, the government plans to boost revenue through service and monitoring digitalization, stronger audits and enforcement, as well as efforts to combat illegal imports and illicit circulation of excisable goods.

The measures, Purbaya said, would be implemented while maintaining a conducive investment climate, supporting exports, and facilitating business activities.

Indonesia recorded tax revenue of Rp1,035.7 trillion in the first half of 2026, equivalent to 43.9 percent of the 2026 state budget (APBN) target. The figure represented a 24.6 percent increase compared with the same period last year.

Tax Revenue Projected Below Target

Previously, Purbaya estimated that tax revenue for the full year of 2026 would reach Rp2,310.8 trillion, or around 98.8 percent of the APBN 2026 target of Rp2,357.7 trillion.

Based on the projection, tax revenue is expected to fall short by around Rp46.9 trillion from the target.

However, the projected shortfall is significantly lower than the Rp271 trillion shortfall recorded in 2025.

Read: S&P: Indonesia’s Economy to Grow 5.1% in 2026, Below Govt Target

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