2027 Tax Target at IDR2,591.4tn, Prabowo Vows to Plug Leakages

JAKARTA, DDTCNews - The submission of the 2027 draft state budget (rancangan anggaran penerimaan dan belanja negara/RAPBN in Indonesian) and its accompanying financial note to the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) has garnered significant public attention this week. The proposed tax revenue target for next year stands at IDR2,591.4 trillion, representing a 12.1% increase from this year’s tax revenue outlook of IDR2,310.8 trillion.

To ensure that the target set out in the 2027 draft state budget is achieved, President Prabowo Subianto has once again reaffirmed his commitment to closing leakages in state revenue, including tax revenue.

"We are pushing state revenue to be more optimal. Revenue leakages must be minimised," he claimed.

Prabowo stated that optimising state revenue is one element of a holistic and consistent fiscal reform effort.

The government has proposed a state revenue target of IDR3,426 trillion in the 2027 draft state budget, representing 6.8% growth compared with the 2026 outlook.

The revenue target will primarily be derived from tax revenues, which are projected at IDR2,908 trillion, representing an increase of 10.5% from the 2026 outlook. Accordingly, the tax ratio for 2027 is targeted at 9.27%, higher than this year’s projected tax ratio of only 8.97%.

According to Minister of Finance, Purbaya Yudhi Sadewa, there remains considerable scope for the government to improve the tax ratio by enhancing the tax authority’s approach to tax collection.

“If I succeed in improving the way we collect taxes this year by improving the tax ratio, there is still potential upside in tax collection next year,” Purbaya claimed.

While tax revenue is targeted to increase by 12.1%, customs and excise revenue is projected to move in the opposite direction in 2027. The customs and excise revenue target for 2027 has been proposed at IDR320.6 trillion, representing a 1.2% decline from the 2026 outlook.

Meanwhile, non-tax state revenues (penerimaan negara bukan pajak/PNBP in Indonesian) are targeted at IDR517.4 trillion in 2027, down 10% from this year’s PNBP outlook.

Beyond the 2027 tax revenue target, several other taxation issues have also drawn readers’ attention over the past week. These include the Ministry of Finance’s plan to issue regulations governing the procedures for obtaining a certificate of registration (surat keterangan terdaftar/SKT in Indonesian) for other parties acting as attorneys for taxpayers as well as the implementation of the policy requiring marketplace providers to collect Article 22 Income Tax.

The following is a complete review of the tax articles.

MoF Prepares SKT Regulation for Tax Attorneys

The Ministry of Finance (MoF) is set to issue a regulation outlining the procedures for obtaining a certificate of registration (surat keterangan terdaftar/SKT in Indonesian) for other parties acting as taxpayers' attorneys.

Functional Tax Instructor, Putri Pramitasari, stated that other parties will be required to pass a competency examination to obtain a certificate of registration.

The competency examination will be administered by the Financial Education and Training Agency (Badan Pendidikan dan Pelatihan Keuangan/BPPK in Indonesian), rather than by the DGT or tax consultant associations.

Government Prepares Tax Policy for EGR and Gold ETFs

The government will prepare a tax policy to accommodate electronic gold receipt (EGR) transactions.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, deems that special attention for the VAT and Article 22 Income Tax treatment of EGR as the underlying asset of exchange-traded funds (ETFs) for gold is required.

"We have just spoken with the Deputy Minister of Finance [Juda Agung] and the Director General [of Taxes, Bimo Wijayanto] regarding the VAT and Article 22 Income Tax treatment of EGR transactions. The hope is that this can be placed on an equal footing with other transactions," he remarked.

Open Option to Delay Marketplace Tax Again

The government may once again postpone the collection of Article 22 Income Tax by marketplace providers, which is scheduled to take effect on 1 November 2026. Tax collection by marketplace providers applied for 5 days from 1 August 1026, before finally being postponed for 3 months.

Minister of Finance, Purbaya Yudhi Sadewa, said the implementation of Article 22 Income Tax collection by marketplace providers pursuant to MoF Reg. 37/2025 could be postponed again if Indonesia's economic conditions deteriorate relatively in the coming months.

" It was deferred before, wasn't it? Later, if [economic] conditions worsen, we can defer it again, but for now [it is deferred] until October first," he claimed.

Ministry of Law Waives Annual Report Fee for LLCs Until December

The Ministry of Law has set the non-tax state revenue (penerimaan negara bukan pajak/PNBP in Indonesian) tariff at IDR0 for the submission of annual reports by limited liability companies (LLCs). Minister of Law Regulation 13/2026 affirms that the determination of the PNBP tariff of IDR0 is intended to improve compliance with the provision of legal services.

The aforementioned IDR0 PNBP tariff applies to the submission of notifications of annual report approval for both audit-obligated and non-audit-obligated LLCs. This IDR0 PNBP is available to LLCs that submit notifications of annual report approval between 1 August and 31 December 2026.

Without Minister of Law Regulation 13/2026, the submission of the notification of annual report approval for an audit-obligated LLC is subject to a PNBP charge of IDR500,000 per notification, whilst the submission of a notification of annual report approval for a non-audit-obligated LLC is subject to a PNBP charge of IDR250,000 per notification.

Prabowo Targets 6% Economic Growth in 2026

Prabowo is targeting overall Indonesian economic growth of 6% in 2026.

Prabowo believes that the relatively ambitious target is feasible through the implementation of appropriate policies. In addition, he noted that Indonesia’s economy is already sufficiently robust, providing the government with a solid foundation from which to pursue the 6% growth target.

“With the right, rational and common-sense policies, I am confident that our economic growth can reach 6% by the end of this year,” Prabowo said. (dik)