Indonesian Political, Business & Finance News

Purbaya to Expand Tax Base Without Raising Rates

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Finance Minister Purbaya Yudhi Sadewa stated that the government continues to monitor global oil price developments and mitigate various risks that could affect national energy stability. The government is also accelerating energy infrastructure development to increase the utilisation of domestic energy sources and reduce dependence on foreign supplies. “The government is working to build energy infrastructure to support the use of domestic energy sources in order to reduce dependence on energy sources from abroad,” Purbaya said during the 25th DPR Plenary Session of the 5th Sitting Period of the 2025–2026 Session Year at the parliament building in Senayan, Central Jakarta, on Tuesday, 14 July 2026. The statement was made in response to parliamentary factions’ views on the accountability report for the 2025 State Budget (APBN) implementation. He noted the government appreciates the National Mandate Party (PAN) faction for its assessment of state revenue realisation throughout 2025. Purbaya said this appreciation encourages the government to strengthen the revenue base, improve data-based service quality and supervision, close leakage gaps, and optimise state revenue fairly and sustainably. Responding to the Golkar Party faction’s views, Purbaya revealed that the government’s medium-term strategy is directed at expanding the tax base without raising rates. This will be achieved by utilising data and technology to reach the digital economy, the shadow economy, and the informal sector, including in customs and excise. On the same occasion, Purbaya said the government is also strengthening state revenue through service digitalisation and supervision, increasing audits and law enforcement, and eradicating illegal imports and the circulation of illegal excisable goods. At the same time, the government continues to maintain the investment climate, encourage exports, and accelerate industrial downstreaming. Purbaya also conveyed that central government spending realisation reached Rp 2,586.4 trillion, or 90.40 per cent of the budget ceiling of Rp 2,701.4 trillion. The government will continue to improve the quality of state spending so that every rupiah of the state budget is more targeted, accountable, and has a real impact on economic growth, poverty reduction, improving the quality of human resources, and equitable welfare. The government welcomed the views of the PKS, Democrat, and NasDem factions, which urged that social assistance and subsidies be better targeted. The government also agreed with the NasDem faction’s proposal regarding regulatory harmonisation and data alignment, requiring all agencies to use the National Integrated Socio-Economic Data (DTSEN) as the primary reference source. To improve the accuracy of social assistance and subsidy distribution, the government continues to strengthen the quality of beneficiary data through regular updating, matching, and integration of socio-economic data. The government is also optimising the use of DTSEN as an integrated database for planning, implementing, and evaluating social protection programmes.

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