Purbaya Forgoes Tax Rate Hikes, Focuses on HR and Coretax Improvements

JAKARTA, DDTCNews - The government will broaden the tax base and improve the performance of Directorate General of Taxes (DGT) employees to pursue a higher tax revenue target in the 2027 budget year.

Minister of Finance, Purbaya Yudhi Sadewa, affirmed that the government has no plans to raise tax rates to achieve next year's tax revenue target. In his view, tax collection will be optimised through both of these efforts.

"We are expanding the tax base; the government has no plans at present to raise tax tariffs. Our primary focus will also be on improving human resources in our tax collection," he said during a working meeting with the House of Representatives Budget Committee (Badan Anggaran/Banggar in Indonesian), Thursday (27/8/2026).

It should be noted that the government is targeting tax revenue of IDR2,591.4 trillion in 2027. This figure represents a 9.91% increase compared with the tax revenue target in the 2026 state budget of IDR2,357.7 trillion.

Beyond that, Purbaya also intends to optimise state revenue by fostering a clean and accountable human resources framework and institution. He therefore regards human resource reform at the Directorate General of Taxes (DGT) and the Directorate General of Customs and Excise (DGCE) as critically important.

"We will improve human resources in tax collection so that, going forward, tax and customs employees will uphold higher standards of integrity, enabling more optimal revenue growth," he said.

Purbaya added that the government will employ several measures to increase state revenue in 2027, including strengthening tax administration through the coretax system and improving taxpayer compliance.

On the other hand, the government also wishes to stimulate economic activity and the business sector through targeted and measurable fiscal incentives. Fiscal incentives are also expected to attract investors to deploy their stated capital in Indonesia.

"The state budget will be managed prudently and sustainably through various efforts, such as continuing to optimise state revenue by improving compliance and the tax base, strengthening coretax, optimising natural resources and providing measured fiscal incentives to encourage investment," said Purbaya. (rig)