State Revenue Hits Rp 1,187 Trillion, Purbaya Promises No Tax Hike

Finance Minister Purbaya Yudhi Sadewa has stressed that the government has no plans to increase tax rates in its efforts to maintain national economic stability and drive growth. He said the increase in state revenue recorded in the first half of 2026 was not due to a rise in tax rates, but rather the result of ongoing tax reforms, organisational improvements, and better tax administration. “If we look at tax revenue alone, it grew by 21.4 percent. This is an encouraging development considering that last year there was a 7 percent contraction in the first six months. So the tax reform and the reform of the tax organisation and personnel have yielded quite promising results, and will continue to improve,” Purbaya said during a working meeting with the House of Representatives’ Budget Committee on Tuesday (7/7/2026). He stressed that the government’s future strategy is to increase state revenue through expanding the tax base, optimising collection, and strengthening taxpayer compliance. With this strategy, the government is confident that state revenue can continue to rise without burdening the business world or the public through higher tax rates. “We will continue to strive for further improvement without raising the tax rate, so there will be no increase in tax rates. We will simply carry out extensification and enforce stricter discipline in tax collection,” Purbaya stated. The statement serves as a positive signal for business actors who have been closely monitoring the direction of fiscal policy amid a global economic slowdown and rising external uncertainty. The government is choosing to strengthen tax compliance, broaden the taxpayer base, and enhance the effectiveness of tax administration as its main strategy to boost state revenue. Tax revenue up to the first half of 2026 was recorded at Rp 1,187.8 trillion, or 44.1 percent of the state budget target. This realisation represents a 21.4 percent increase compared to the same period last year, marking a significant recovery after tax revenue contracted in the first half of the previous year. Overall, state revenue in the first half of 2026 reached Rp 1,459.4 trillion, equivalent to 46.3 percent of the state budget target. This figure also grew by 21.4 percent year-on-year. Of the total state revenue, tax receipts contributed Rp 1,187.8 trillion, while non-tax state revenue reached Rp 271 trillion, or about 59 percent of the target set in the state budget. Purbaya reiterated that the government will continue to maintain a balance between the need for state revenue and the sustainability of the business sector. Therefore, future tax policy will remain directed at strengthening state revenue without undermining investment competitiveness or imposing additional burdens on the public through tax rate increases.