September 2, 2025 | 07:42 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati announced that the government will not impose new taxes or raise tax rates in 2026. Despite this, the state revenue target in the 2026 State Budget (RAPBN) is set to increase by 9.8%, reaching Rp3,147.7 trillion.
"There has been a misconception in the media that our effort to increase revenue implies a tax hike. The fact is that the tax rate remains the same," Sri Mulyani said during a working meeting with the DPD Committee IV on Tuesday, September 2, 2025.
Of the total revenue, tax revenue is projected to reach Rp2,357.7 trillion, marking a 13.5 percent increase from the previous year. "Due to the country's significant needs, state revenue must continue to increase without new policies. There is often an assumption that an increase in revenue means a tax increase, whereas the tax rate remains the same," she explained.
The government's strategy to boost revenue focuses on improving taxpayer compliance. This approach aims to make tax payment more accessible for the general public while protecting smaller and more vulnerable economic groups through targeted incentives.
For example, Sri Mulyani highlighted that micro, small, and medium-sized enterprises (MSMEs) with an annual turnover up to Rp500 million remain exempt from income tax.
Furthermore, MSMEs with turnovers between Rp500 million and Rp4.8 billion are subject to a final income tax rate of just 0.5 percent, which is significantly lower than the general corporate income tax rate of 22 percent.
"State revenue is being safeguarded, but support for small groups is still being provided. This is a form of mutual cooperation," Sri Mulyani said.
Tax incentives are also extended to priority sectors such as education and health, as well as to individuals earning less than Rp60 million per year, who remain exempt from income tax.
To bolster revenue collection, Sri Mulyani stated that the government is continually enhancing the Coretax System, the nation's primary tax administration platform. This system is designed to integrate data, strengthen supervision, and ensure that digital economic transactions are treated equitably with conventional ones.
"The main program is the improvement of Coretax, data exchange, and joint programs for supervision and examination. At the same time, we continue to provide incentives to maintain people's purchasing power, including in the housing and downstream sectors," she concluded.
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