No Tax Rate Hike, Says Finance Minister Purbaya, Vowing to Boost Revenue Through Intensification

Jakarta, CNBC Indonesia - Minister of Finance Purbaya Yudhi Sadewa has confirmed that there will be no increase in tax rates going forward, as the government aims to boost state revenue for 2026 through intensification and expansion of the tax base. He made the statement during a working meeting with the Budget Committee of the Indonesian House of Representatives (DPR) in Jakarta on Tuesday.

“We will continue to strive for improvement without raising the tax rate,” Purbaya stated. “So, there will be no tax rate hike; we will instead focus on extensification.”

Overall state revenue reached Rp1,459.4 trillion, marking a 21.4% year-on-year growth. The largest contribution came from taxation, totalling Rp1,187.8 trillion, which includes customs and excise duties of Rp152 trillion.

Breaking down the tax revenue, Corporate Income Tax and deposits grew by 28.6% in the first six months of the year to reach Rp196.1 trillion. Personal Income Tax (PPh Orang Pribadi), Article 21 Income Tax, and related deposits collected Rp146 trillion, reflecting a 13.6% increase.

Furthermore, Final Income Tax, Article 22 Income Tax, and Article 26 Income Tax brought in Rp159.9 trillion, growing by 1.4%. Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM) recorded a 42.2% surge, totalling Rp380 trillion, while other taxes contributed Rp153.8 trillion, up 22.7%.

“Perhaps the results are not yet as ideal as many would hope, but there has been a significant improvement,” Purbaya remarked.