Purbaya Pursues Tax Ratio of 11 Per Cent, Relies on Tax Digitalisation

Indonesia’s government is targeting an increase in the country’s tax ratio (tax ratio) to approximately 11 per cent. This effort is being pursued through strengthening the tax system and improving state revenue collection performance.

Finance Minister Purbaya Yudhi Sadewa stated that the government has undertaken various reforms to tax and customs systems, including through service digitalisation. “We have already overhauled customs and tax systems. We have activated digitalisation. And we hope the economy will grow faster than last year so that revenue also increases,” Purbaya said at his office on Friday (13 March 2026).

According to him, state revenue performance in early 2026 shows an improving trend. Tax receipts have recorded quite substantial growth compared with the previous period.

“Currently, tax revenue alone has grown 30 per cent. Customs revenue was negative in January, but is now positive at seven per cent,” he said.

He assessed that the improvement in state revenue collection offers hope that the target tax ratio increase can be achieved, even as the global economy faces various pressures.

Purbaya added that the government continues to maintain fiscal discipline, including maintaining a maximum budget deficit threshold of three per cent of gross domestic product (GDP).

According to him, many other countries actually have higher deficit levels compared with Indonesia. “Perhaps Vietnam is higher than us, at around four per cent. India is even higher, with a deficit of five to six per cent. So based on those figures alone there should be no issue,” he said.

However, the government continues to consider various other factors, including the perception of international rating agencies towards Indonesia’s fiscal policy.

“But what is clear is that for now we will implement fiscal policy carefully,” Purbaya said.

He emphasised that the decision regarding a possible widening of the deficit remains in the government’s hands after considering various economic conditions. “If the President orders it, we will implement it. I am just the President’s hand,” he said.