Tax Revenue Surges 30.4% in February 2026, Driving Sector Identified

Jakarta — Deputy Finance Minister Suahasil Nazara reported positive state revenue performance through the end of February 2026. In presenting the APBN KiTa report, Suahasil highlighted net tax revenue growth reaching 30.4% year-on-year, driven strongly by high levels of economic transaction activity among the population.

According to Ministry of Finance data, as of 28 February 2026, realised tax revenue reached Rp245.1 trillion. Specifically, Suahasil noted the growth in Value Added Tax (VAT) and Luxury Goods Tax (PPnBM) surging to 97%.

“VAT and Luxury Goods Tax are paid when transactions occur. This surge demonstrates that in our economy, transactions continue running, economic activity continues,” said Suahasil.

The four main sectors — manufacturing, trade, finance and insurance, and mining — remained the largest contributors, accounting for 74% of total tax revenue.

In line with strong revenue, the government accelerated state spending to drive economic growth in Q1 2026. State spending realisation through the end of February reached Rp493.8 trillion, growing significantly by 41.9% compared with the same period last year.

According to Suahasil, one of the main drivers of increased spending was the Free Nutritious Meals (MBG) programme. As of 9 March 2026, the programme had reached 61.6 million beneficiaries comprising 50 million students and 10.5 million non-students (pregnant women, nursing mothers, and elderly) with total budget absorption reaching Rp44 trillion.

Additionally, the Ministry of Finance reported realisation of holiday bonus payments for civil servants, military, and police in 2026. As of 10 March, the government had disbursed Rp24.7 trillion or approximately 45% of the total Rp55 trillion allocation. “We are encouraging all ministries and local governments to complete holiday bonus payments before the religious holiday,” he added.

Meanwhile, the government continued monitoring crude oil price movements due to Middle Eastern conflicts. Although prices temporarily touched above US$100 per barrel, crude oil showed highly volatile trends. Suahasil affirmed that the budget will continue functioning as a shock absorber through energy subsidy and compensation schemes to protect public purchasing power from global price fluctuations.

In customs, there was a significant increase in enforcement frequency against illegal cigarettes, rising from 1,993 operations last year to 2,872 operations in 2026. Quantities of illegal cigarettes seized doubled to 369 million sticks.

Meanwhile, transfers to regions reached Rp147.7 trillion. The government also gave special attention to disaster-affected areas in Aceh, North Sumatra, and West Sumatra by allocating additional funds of Rp10.65 trillion to be disbursed in three phases from February to April 2026.