Indonesia implements fiscal strategies to boost tax and regional revenue

Indonesia is implementing various fiscal strategies at both national and regional levels to bolster revenue. Nationally, Finance Minister Purbaya Yudhi Sadewa announced a target for tax revenue to reach Rp 2,908 trillion in 2027, representing a 10.5% increase from the 2026 outlook. This growth is expected to be driven by economic expansion and administrative improvements, specifically through the implementation of the Coretax technology system and personnel restructuring.

At the regional level, the Kudus Regency Government is seeking to increase its Regional Original Income (PAD) to mitigate fiscal pressure caused by reduced central government transfers. Regent Sam’ani Intakoris stated that the administration will not raise tax or retribution rates to avoid burdening citizens. Instead, the strategy focuses on optimizing existing sources by improving the collection of arrears and closing loopholes to prevent revenue leakage. These efforts are projected to potentially add nearly Rp 100 billion to the region's revenue.