Indonesian Political, Business & Finance News

Reporting Strong Tax Revenue to Prabowo, Purbaya: Tax Officials Fear Misconduct

| Source: CNBC Translated from Indonesian | Finance
Reporting Strong Tax Revenue to Prabowo, Purbaya: Tax Officials Fear Misconduct
Image: CNBC

The majority of various types of tax revenues experienced growth up to the first quarter of 2026, or precisely at the end of March 2026. This supports the tax revenue performance that grew 20.7% to Rp 394.8 trillion, from the previous Rp 327 trillion in the same period last year.

Finance Minister Purbaya Yudhi Sadewa stated that the strong tax revenue in the first three months of this year is inseparable from the improving economic activity in Indonesia. Additionally, he mentioned it is due to tax officials no longer daring to tamper with taxpayers.

He said this factor is clearly indicated by the growth in personal income tax and PPh 21, which reached 15.8% year-on-year with a value of Rp 61.3 trillion in the first quarter of 2026. Corporate PPh also rose 5.4% to Rp 43.3 trillion.

“This shows that there is indeed an improvement in our economy and the work of tax officials is better compared to previous years,” said Purbaya during a working meeting with Commission XI of the DPR in Jakarta on Monday (6/4/2026).

Final PPh, PPh 22, and PPh 26 also grew 5.1% to Rp 76.7 trillion. VAT and luxury goods sales tax deposits were said to have experienced rapid growth of 57.7% year-on-year, reaching Rp 155.6 trillion, although other taxes declined 5.7% to Rp 57.9 trillion.

Purbaya stated that the improved tax revenue performance as of March 2026 is consistent with what occurred in January-February 2026, with growth around 30%. He also claimed to have reported this condition to President Prabowo Subianto, prompting a special response from the head of state for the tax officials.

“When I reported it to the President, his comment was: ‘Oh, they’re scared now, huh?’ So tax officials fear misconduct, and the public seems more disciplined too. This is a good direction from our efforts to enhance the credibility of our tax collection,” said Purbaya.

Purbaya mentioned the improving performance of tax fiscal officers, including personnel from the Directorate General of Customs and Excise, because they no longer receive legal immunity. He assured that any misconduct by tax and customs employees causing state revenue leakage will be addressed by law enforcement authorities.

“Because perhaps in the last 10-20 years they were protected in the sense that the Attorney General’s Office couldn’t enter, the police couldn’t enter,” he said.

“So this is a significant change in our current approach to taxes and customs duties so they can truly improve themselves. Now, no one is immune or invulnerable to the law,” emphasised Purbaya.

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