Tax Data Signals Strong Growth Ahead for Indonesian Industry

The Directorate General of Taxes (DJP) at the Ministry of Finance has recorded indications that Indonesia’s industrial sector is poised for rapid growth. Director General of Taxes Bimo Wijayanto stated that this indication is visible from the high growth in tax payments from the industrial sector, as well as Value Added Tax (VAT) on imports. “I see that everything is good from the input side of import VAT. So we hope that with good input, production will also be good in the second, third, and fourth quarters,” Bimo said at his office, quoted on Tuesday (14/7/2026). Up to the end of the first semester of 2026, the DJP recorded high growth in VAT and Sales Tax on Luxury Goods (PPnBM) receipts. The value reached IDR 380 trillion, with a growth of 42.2% compared to the same period last year. “In the VAT sector, the good growth is in the purchase of various imported raw materials in industries such as textiles, petrochemicals, and also industries related to animal feed and so on,” Bimo explained. Meanwhile, based on the main tax-contributing sectors, the highest growth occurred in the trade sector, reaching 45.9% year-on-year (yoy), with a contribution of 25.6% to total tax revenue in the first semester of 2026. The second-highest growth came from the mining sector at 22.8% with a 9.3% contribution, followed by the processing industry at 19.9% with a 22.8% contribution, and corporate services at 14.7% with a 3.2% contribution. Furthermore, the transportation and warehousing sector grew by 10.7% with a 4.3% contribution, while construction and real estate grew by 9.2% with a 3.7% contribution. Bimo emphasised that in addition to growing tax payments, the tax base has also expanded this year with the addition of around 140,000 taxpayers. “So this extensification is not only a purely new base, but also an old dormant base. We are nudging them back with existing data. We are also nudging inactive ones to re-enter our taxation system,” he said.