Purbaya Holds Off on New Taxes, Focuses on Chasing Compliance of 40 Chinese Steel Companies

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has emphasised that the government will not yet implement new taxes. Discussions on Value Added Tax (VAT) for toll road services or taxes for the wealthy group remain merely plans. These plans are outlined in the Strategic Plan document of the Directorate General of Taxes for 2025-2029. “So our position remains unchanged. We will not impose additional taxes until the economy is deemed sufficiently strong and the public’s purchasing power is robust enough. That is the main benchmark,” Purbaya stated during a media briefing at the Financial Education and Training Agency (BPPK) in South Jakarta on Friday (24/4/2026). The current policy focus is directed towards optimising existing regulations. Enforcement against taxpayers is a priority. State revenues are assessed as still able to increase if leakages are reduced. Purbaya highlighted the practice of underinvoicing, which involves reporting transaction values below their actual amounts. Suspicions have arisen regarding several foreign investment steel companies from China. “We will pursue them again; only two have been pursued so far. Apparently, the actions were not firm enough. I received reports that 40 steel companies are still running their businesses without paying the appropriate taxes, business as usual,” he said. Steps to pursue compliance are deemed more urgent than preparing new taxes. This strategy emphasises the optimisation of the existing tax base. The government is not expanding the types of levies in the near future.