Indonesian Political, Business & Finance News

Purbaya's Plan to Chase Rp2,357 T Without Raising Rates: Hunt Tax Evaders

| Source: CNBC Translated from Indonesian | Economy
Purbaya's Plan to Chase Rp2,357 T Without Raising Rates: Hunt Tax Evaders
Image: CNBC

Finance Minister Purbaya Yudhi Sadewa will hunt down tax evaders to ensure they fulfil their tax payment obligations, while also pursuing economic sectors that have not yet entered the taxation system. This approach is being taken by Purbaya as an effort to broaden the tax base, with the ultimate goal of chasing the tax revenue target in the 2026 State Budget (APBN) of Rp2,357.7 trillion without having to raise tax rates. “For example, one of the things we are working on is income tax and VAT from online sellers. Previously it was ignored, now we are asking them to pay,” Purbaya said when met by the media at the Parliament Building, Jakarta, Tuesday (14/7/2026). In broadening the taxation base, Purbaya stressed that the government does not always need to raise tax rates. By pursuing the compliance of tax evaders and expanding the tax base, he is confident the target can be met, even though the outlook for the Semester I-2026 Report indicates only Rp2,310.8 trillion, or 98.8%, will be realised. “We are not raising tax rates, but those who should pay tax must pay. So that is what is meant by extensification. To find those who should have paid tax but did not, so they pay,” he said. “If I have more money, we can later channel more back to the community,” the Finance Minister continued. One of Purbaya’s targets for extensification, besides pursuing tax evaders, is to reach the tax obligations of the informal sector and shadow economy activities, in addition to the digital economy which has already begun. “To reach the digital economy, shadow economy, and informal sector,” Purbaya stated. He assured that in implementing this tax policy, the government will not pursue people who are already compliant in fulfilling their tax obligations, including the wealthy, through intensification policies. “No. They are not chased, it’s just normal. If they have paid tax, that’s it. I will not chase rich people. I will not audit rich people and arrange everything until they go bankrupt, it’s not like that. So I will not slaughter the golden goose. I will collect its eggs,” he explained.

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