Indonesia reports stable purchasing power and rising tax revenues

Indonesian Deputy Coordinating Minister for Economic Affairs, Dradjad Hari Wibowo, has denied claims that public purchasing power is weakening. He stated that data from the Central Bureau of Statistics (BPS) indicates a significant shift in consumption patterns rather than a decline. This shift is evidenced by high growth in the transportation, tourism, restaurant, and hotel sectors, as well as a surge in digital transactions, including QRIS payments which have seen substantial year-on-year increases.

BPS Head Amalia Adininggar Widyasanti confirmed that consumption in hotels and restaurants grew by over 6 percent, with 99 regions in Indonesia showing similar growth during the first half of 2026. Additionally, domestic passenger numbers and domestic tourism trips have both shown upward trends.

On the fiscal front, tax revenues through August 2026 have grown by 25.42 percent year-on-year, reaching Rp2,055.7 trillion. This growth has helped narrow the state budget deficit to Rp240.1 trillion, or 0.93 percent of GDP. Meanwhile, the government is addressing economic growth through debottlenecking efforts, having resolved 135 out of 190 business complaints to facilitate investment and job creation.