Purbaya Reveals Strategy to Boost Tax Revenue Without Rate Hikes

JAKARTA, DDTCNews - Minister of Finance, Purbaya Yudhi Sadewa, expressed appreciation for all the views of the parliamentary factions of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) on the Draft Law on Accountability for the Execution of the State Budget (P2-APBN) for the 2025 Fiscal Year, particularly with regard to improving tax revenue performance.

Before the House, Purbaya pledged to boost tax revenue through a number of strategies that have been drawn up for the medium term, for instance, by broadening the tax basis and intensifying oversight through the use of coretax and exchange of data.

"In the medium term, the taxation strategy is directed at basis broadening, without simply raising rates, by utilising data and technology to reach the digital economy, the shadow economy and the informal sector," he said at the House Plenary Session on Tuesday (14/7/2026).

Beyond taxation, Purbaya also committed to boosting the performance of customs and excise revenue. Several strategic steps will be taken going forward, including the digitalisation of customs and excise services, enhanced supervision, as well as enforcement and auditing.

The government will also step up efforts to combat the illegal imports of goods and illicit excisable goods (barang kena cukai/BKC in Indonesian). At the same time, the government is preparing customs facilities and incentives to drive investments, export activities and domestic downstream processing.

Further, Purbaya also expressed appreciation for the views of the factions that highlighted the realisation of state revenues in 2025, which reached only IDR2,765.13 trillion against a target of IDR3,005 trillion.

He affirmed that state revenues would continue to be increased to support various government programmes. In addition, the government would also continue to improve the quality of data-based services and supervision across all areas.

"As well as closing leakage gaps, and optimising revenue in a fair and sustainable manner to support the financing of national construction," Purbaya explained.

Overall, Purbaya called on the legislature to continue to cooperate and support the government's performance going forward, for the state budget to be managed prudently and free from any violations or irregularities. (rig)