Indonesia reports high budget realization and tax revenue targets

Indonesia is seeing significant shifts in fiscal management and budget realization as of late 2026. The Directorate General of Taxes (DJP) is working to collect the remaining Rp750 trillion of its annual tax revenue target, having reached Rp1,607 trillion (68.2%) by September 30. To achieve this, the DJP is optimizing data for supervision, examination, and law enforcement, while also implementing new tax collection methods for digital transactions and marketplaces.

To support taxpayers, the government has implemented Ministry of Finance Regulation (PMK) No. 71/2026. This policy prioritizes the repayment of principal tax debt over administrative sanctions, providing financial relief to individuals and businesses.

On the expenditure side, education spending has reached a five-year high of Rp574.2 trillion, with Rp134.4 trillion allocated to the free nutritious meal program. Food security funding has also hit a peak of Rp113.3 trillion, covering fertilizer subsidies and rice procurement. Additionally, the Directorate General of Immigration reported that non-tax state revenue (PNBP) reached Rp8.68 trillion, exceeding its annual target, driven largely by visa services.