Indonesian Political, Business & Finance News

Tax Revenue Increases by 30.7 Percent in Early 2026

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

The Ministry of Finance reported that as of January 31, 2026, net tax revenue reached IDR 116.2 trillion. This figure represents a 30.7 percent increase compared to the revenue collected during the same period last year, which amounted to IDR 88.9 trillion.

Deputy Minister of Finance, Suahasil Nazara, stated that tax refunds also decreased in early 2026, contributing to the increase. “This is good net tax growth. Tax refunds are carried out by the Directorate General of Taxes with prudence and good governance,” he said during a press conference in Jakarta on Monday, February 23, 2026.

One of the largest contributors to net revenue is value-added tax (VAT) and luxury goods sales tax (PPnBM). As of January 31, 2026, IDR 45.3 trillion had been collected from these types of taxes.

In gross terms, VAT and PPnBM have collected IDR 82.6 trillion, or a 7.7 percent increase compared to last year. Suahasil explained that value-added tax is paid as long as there are transactions. “So this is just an indication that transactions are continuing in our economy,” he said.

Another source of increased net tax revenue is corporate income tax (PPh), which reached IDR 5.7 trillion. Furthermore, other taxes amounted to IDR 16.1 trillion.

Personal income tax and PPh 21 have collected IDR 13.1 trillion, but this figure experienced a contraction of minus 20.4 percent compared to last year. A decrease also occurred in final PPh, PPh 22, and PPh 26, reaching IDR 26 trillion, or a decrease of 11 percent compared to the same period last year.

“PPh still looks negative, but corporate PPh looks positive in net terms. Of course, we will continue to pay attention to this in the future for solid tax collection throughout the year,” he said.

Looking at the industrial sector, Suahasil said that the processing industry had the largest tax contribution, growing by 18.1 percent. The second-largest contribution came from trade, which grew by 2.6 percent in net terms, a significant increase of six times compared to last year.

Meanwhile, the mining sector’s net tax revenue grew by 10.9 percent. “These three sectors account for about 66 percent of our tax revenue. So the majority are growing quite strongly,” he said.

Overall, tax revenue as of January 31, 2026, reached 4.9 percent of the tax revenue target in the state budget (APBN) for 2026. This year, the government is targeting tax revenue of IDR 2,357.7 trillion.

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