TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa said the government will not raise tax rates in the medium term, instead focusing on increasing state revenue by expanding the tax base.
"Regarding the government's medium-term strategy to strengthen state revenue, we can say that the tax strategy will focus on expanding the tax base rather than simply increasing tax rates," Purbaya said during the 25th plenary session of the fifth legislative period at the House of Representatives (DPR) in Jakarta on Tuesday.
Purbaya said tax base expansion would be carried out through the use of data and technology to reach the digital economy, the shadow economy, and informal sectors.
Government Eyes Wider Tax Base
In the customs and excise sector, the government plans to boost revenue through service and monitoring digitalization, stronger audits and enforcement, as well as efforts to combat illegal imports and illicit circulation of excisable goods.
The measures, Purbaya said, would be implemented while maintaining a conducive investment climate, supporting exports, and facilitating business activities.
Indonesia recorded tax revenue of Rp1,035.7 trillion in the first half of 2026, equivalent to 43.9 percent of the 2026 state budget (APBN) target. The figure represented a 24.6 percent increase compared with the same period last year.
Tax Revenue Projected Below Target
Previously, Purbaya estimated that tax revenue for the full year of 2026 would reach Rp2,310.8 trillion, or around 98.8 percent of the APBN 2026 target of Rp2,357.7 trillion.
Based on the projection, tax revenue is expected to fall short by around Rp46.9 trillion from the target.
However, the projected shortfall is significantly lower than the Rp271 trillion shortfall recorded in 2025.
Click here to get the latest news updates from Tempo on Google News
How Safe Is Indonesia's Debt? Minister Purbaya Responds
8 detik lalu
Minister of Finance Purbaya states that the strategy for future debt management rests upon four pillars.
Purbaya's Goals for the Rp400tn SAL Bank Transfer
2 hari lalu
Finance Minister Purbaya Yudhi Sadewa transferred Rp400 trillion in excess budget balance (SAL) to the banking sector.
Risky Budget Balance Acrobatics
5 hari lalu
The Financial Minister is withdrawing excess budget balance (SAL) funds from banks, triggering new fiscal and banking problems.
Indonesia's First-Half Revenue Hits 46 Pct of Target, Says Purbaya
6 hari lalu
Indonesian Finance Minister Purbaya reported that state revenue reached Rp1,459.4 trillion during the first half of 2026.
Indonesia Readies Incentives for Global Financial Center
11 hari lalu
Finance Minister Purbaya plans various facilities and incentives to attract global investors to the Indonesian International Financial Center.
How Will Indonesia Attract Investors to Its New Financial Center?
11 hari lalu
Indonesia is gearing up to attract investors to channel capital into the planned Indonesian International Financial Center (IIFC).
Minister Purbaya Says BGN to Implement Further Budget Savings
17 hari lalu
Purbaya stressed that the efficiency measures would not reduce the nutritional standards of meals provided under the Free Nutritious Meals program.
AIIB Plans Representative Office in Indonesia, Minister Says
17 hari lalu
The Indonesian government has pledged to provide land and a building for the AIIB office as part of the cooperation.
Indonesia Won't Cut Free Meal Budget Per Serving, Purbaya Says
17 hari lalu
The budget for the Free Nutritious Meals (MBG) program was cut from Rp335 trillion to Rp268 trillion under the government's efficiency measures.
Minister Purbaya Channels Rp400 Trillion to State-Owned Banks
17 hari lalu
Indonesia has raised government fund placements in state-owned banks to Rp400 trillion (US$24.5 billion) to bolster banking liquidity.
