Indonesia Finance Minister Purbaya Rules Out Tax Hikes, Pushes Tax Base Expansion

Finance Minister Purbaya Yudhi Sadewa told parliament that the government will not raise tax rates in the medium term, opting instead to broaden the tax base. The strategy will use data and technology to bring digital‑economy activities, the shadow economy and informal sectors into the tax net, while customs and excise will be digitised, audits intensified and illegal imports curbed. Tax revenue rose 24.6 % in the first half of 2026 to Rp 1,035.7 trillion, though the full‑year target is expected to fall short by about Rp 46.9 trillion, a far smaller gap than in 2025.

Purbaya also reaffirmed the constitutional mandate that education spending remain at least 20 % of the state budget and noted that S&P Global Ratings kept Indonesia’s sovereign rating at BBB with a stable outlook, underscoring confidence in the economy. He addressed early implementation challenges in the Free Nutritious Meals program and confirmed the government will defend the Patriot Bond law in the Constitutional Court. Across these statements, the ministry stressed fiscal prudence, investment‑friendly policies and measures to shield the economy from inflationary pressures.