Without Raising Tax and Excise Rates, Here's How Purbaya Plans to Boost Revenue

Finance Minister Purbaya Yudhi Sadewa has detailed a strategy to broaden the tax base that the government will pursue in an effort to increase state revenue. He outlined this strategy in response to scrutiny from factions in the House of Representatives (DPR) regarding the shortfall, or failure to achieve the state revenue target in 2025. State revenue in 2025 was recorded at only Rp2,756.3 trillion, approximately 91.8% of the 2025 state budget target of Rp3,005.1 trillion.

Purbaya explained that to strengthen state revenue, particularly regarding tax receipts, the medium-term strategy is to expand the tax base without having to raise rates. This effort is then supported by the utilisation of data and technology. “We can convey that in the medium term, the taxation strategy is directed at expanding the base without merely raising rates through the use of data and technology,” Purbaya stated during the DPR RI Plenary Session at the Parliament Complex, Jakarta, Tuesday (14/7/2026).

To strengthen this tax base, one of Purbaya’s targets is to reach the digital economy and the shadow economy. “To reach the digital economy, shadow economy, and the informal sector,” Purbaya said. In the field of customs and excise, Purbaya stated that strengthening revenue is pursued through the digitalisation of services and supervision, increased audits and enforcement, and the eradication of illegal imports and excisable goods while continuing to facilitate investment, exports, and downstream processing.

Previously, in the Semester I-2026 outlook, the government estimated that tax revenue would again fall short of the target this year, with a shortfall of up to Rp46.9 trillion. Purbaya projected that tax revenue in 2026 would only reach Rp2,310.8 trillion, or 98% of the target of Rp2,357.7 trillion. To minimise the potential shortfall in tax revenue, Purbaya said he would strive to maintain the momentum of tax revenue growth at around 23% to achieve this year’s tax target. “Hopefully we can hold tax revenue at 23%, so our income will be better,” he said.

Efforts undertaken by Purbaya include improving the efficiency of tax employees, fixing the Coretax system, and improving procedures. He will continue to monitor the performance of tax employees in all service offices to ensure the quality of service to taxpayers improves. Purbaya also expressed his determination to continue fixing Coretax to make tax services run more optimally. “We will monitor Coretax, we will also monitor the performance of employees in every tax office. If there are any who appear to be moving too slowly or public complaints that are not handled quickly, we will act swiftly,” Purbaya said. He even asserted that he has the authority to temporarily deactivate employees deemed to be showing inadequate performance. “Now I can send employees home. I will send them home if their work is not good,” he said.