Purbaya Confirms No Tax Rate Increases in the Near Future

Jakarta – Minister of Finance Purbaya Yudhi Sadewa has stressed that the government has no plans to increase tax rates in the medium term. Fiscal policy will instead focus on broadening the tax base to boost state revenue.

The statement was made by Purbaya while responding to a parliamentary faction’s views during the 25th Plenary Session of the House of Representatives in Jakarta on Tuesday, 14 July 2026.

“Regarding the government’s medium-term strategy to strengthen the revenue base, we can convey that the medium-term taxation strategy is directed at base expansion without simply raising rates,” Purbaya said.

According to Purbaya, the tax base expansion will be carried out by optimising the use of data and technology. The measure aims to reach digital economy activities, the shadow economy, and the informal sector, which have so far not been optimally covered.

In the customs and excise sector, the government is also preparing a number of steps to strengthen state revenue. These strategies include the digitalisation of services and supervision, increased audit and enforcement activities, and the eradication of illegal imports and the circulation of illicit excisable goods.

He emphasised that these efforts would be implemented while maintaining the investment climate, encouraging exports, and ensuring smooth business activities.

Throughout the first half of 2026, national tax revenue realisation reached Rp1,035.7 trillion, or 43.9 per cent of the 2026 state budget target. This figure grew by 24.6 per cent compared to the same period the previous year.

Purbaya previously projected that tax revenue for the whole of 2026 would reach Rp2,310.8 trillion, or approximately 98.8 per cent of the state budget target of Rp2,357.7 trillion. With this projection, tax revenue is expected to experience a shortfall of around Rp46.9 trillion, significantly lower than the shortfall in 2025, which reached approximately Rp271 trillion.