Purbaya: New Taxes in 2027 Only if Economy Grows 6 Percent

Finance Minister Purbaya Yudhi Sadewa has stated that the possibility of introducing new taxes in the 2027 fiscal year will only be considered if national economic growth reaches 6 percent consecutively.

Speaking during a press conference on the Draft State Budget (RAPBN) and Financial Note for the 2027 Fiscal Year in Jakarta on Friday, Purbaya explained that he would monitor economic performance over the coming quarters. He indicated that if the economy grows by 6 percent by the end of 2026 and again in the first quarter of 2027, the government might then consider imposing new taxes.

“If it’s only one quarter, it’s not possible yet. But the room for that becomes wide open. We will see how the public’s purchasing power actually is. For example, if by the end of this year it can be 6 percent, then in the first quarter of 2027 it is 6 percent again, or more, maybe we will impose new taxes,” Purbaya explained.

In the 2027 Draft State Budget, the government is targeting tax revenues of Rp2,591.4 trillion, a 12.1 percent increase from the 2026 projection of Rp2,310.8 trillion. This tax revenue is part of the government’s target to increase state revenue, which is set at Rp3,426 trillion.

To achieve this, the government will implement three strategies: optimising state revenue through strengthening taxation and non-tax state revenues from natural resources; strengthening legal approaches and fiscal incentives to support investment; and adjusting revenue policies in response to the digital economy and global taxation.