Purbaya Assures No New Taxes, Focuses on Strengthening Economy Amid Global Turmoil

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has assured that the government will not add new types of taxes or increase tax rates in the near term. Amid global economic pressures, the government is choosing to maintain purchasing power and drive growth through strengthening investment and improving the business climate. Purbaya stressed that current fiscal policies are not aimed at adding burdens to the public, but rather at enhancing revenues via improved tax compliance and closing leakages. “The government’s current focus is on increasing compliance and closing tax leakages, not raising rates,” Purbaya stated in an official release on Wednesday (29/4/2026). Amid rising global uncertainties, Purbaya said Indonesia must instead strengthen its domestic growth engines. The former LPS head assessed that external pressures are always present from time to time, but can be mitigated through household consumption, investment, and policy coordination. “Public spending is the largest engine of national economic growth,” Purbaya emphasised. Therefore, the government, according to Purbaya, is working to keep consumption strong while encouraging private investment to support growth. Furthermore, Purbaya affirmed that Indonesia’s economy has long relied on three main pillars: consumption, investment, and trade. All three, he said, must be maintained to continue growing amid global turbulence. “In reality, Indonesia’s economy is supported by consumption, investment, and trade. Therefore, we will continue to safeguard the private sector to keep growing, one of which is through the P2SP task force or debottlenecking,” he said. He explained that the debottlenecking task force is being prepared to accelerate the resolution of various business and investment obstacles, from permitting issues to on-the-ground constraints that hinder business expansion. In his presentation, Purbaya also underscored the importance of legal certainty as part of the strategy to maintain economic growth. According to him, synergy with law enforcement agencies is crucial so that investments, including in regions, are not disrupted by non-economic barriers. “So if there are obstacles in business or investment, they can be reported directly and will be followed up immediately by law enforcement,” stressed Purbaya Yudhi Sadewa. Rather than relying on additional levies, the government, he said, is choosing to strengthen the economic foundation through revenue reforms, resolving business obstacles, and keeping space for private sector growth open.