Indonesia's Investment and Tax Revenues Surpass Targets in 2025‑2026

Indonesia’s economy posted strong performance in 2025‑2026. National investment reached Rp 1.931 trillion in 2025, exceeding the government target of Rp 1.905 trillion, while first‑half 2026 investment climbed to Rp 1.010 trillion, a 7.2 % year‑on‑year rise. Investment outside Java accounted for over 51 % of the total, with the hilirisation segment recording Rp 152.7 trillion in Q2 2026; bauxite emerged as the leading commodity, overtaking nickel. The domestic‑foreign split remained roughly even, with PMDN and PMA each contributing about 50 % of the total.

Tax receipts surged 24.6 % to Rp 1.0357 trillion in the first half of 2026, covering 43.9 % of the APBN target. A shortfall of Rp 270 trillion was offset by a budget‑efficiency programme that trimmed spending by Rp 306 trillion without harming civil‑service wages or basic social protection. The Tax‑Payer Community proposed the “Coretax” system to eliminate third‑party withholding and shift to direct taxpayer settlement.

Key financial reforms were announced: the International Financial Center of Indonesia (PFII) aims to position the country as a global finance hub; BP Tapera accelerated KPR lending for low‑income families, reaching 101 000 homes financed with Rp 12.67 trillion. Consumer‑protection efforts saw 89 % of complaints resolved, representing Rp 18.59 billion in transactions. Other government actions included the ATR/BPN performance target of 98 % for 2026, a competency assessment for civil‑service transfers, and the allocation of a Rp 27.4 billion surplus budget in Magetan.

The Jakarta Stock Exchange rallied, with foreign investors net‑buying over Rp 283 billion. The tourism ministry also highlighted safety as a new priority for destination development.