Purbaya Promises No Tax Increases Until Indonesia's Economy Reaches 6%

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has emphasised that there will be no increases in tax rates or new types of taxes in the near future.

This is particularly true before the economy and public purchasing power improve, marked by economic growth around 6%. As is known, Indonesia’s economic growth in the fourth quarter of 2025 was recorded at 5.39%.

“The government’s current focus is on increasing compliance and closing tax leakages, not raising rates,” Purbaya stated in an official remark quoted on Wednesday (29/4/2026).

On the same occasion, Purbaya explained that public spending is the biggest engine of national economic growth.

Given that Indonesia’s economy is supported by consumption, investment, and trade.

“Therefore, we will continue to safeguard the private sector so that it keeps growing, one of which is through the P2SP task force or debottlenecking,” he said.

Purbaya previously stated that Indonesia’s economic growth target of up to 8% is not impossible and can be achieved in the next two to three years.

Purbaya said that with continuously strengthened economic foundations and acceleration of reforms in various sectors, the national economic growth rate has the potential to increase significantly from the current level of around 5%.

“An 8% growth might seem too high to some people, but to me, it’s already almost visible. In two or three years, you’ll see it—the 8% figure will be nudging upwards,” Purbaya remarked at the Inauguration of the Planned and Periodic Investment Programme (PINTAR) for Mutual Funds at the Indonesia Stock Exchange (BEI) on Monday (27/4/2026).

He also emphasised that the government is currently pushing for accelerated growth through strengthening the private sector and government spending.