Indonesia tax revenue and fiscal optimization

Indonesia is pursuing various fiscal and administrative strategies to increase tax and regional revenue at both the local and national levels.

In Central Java, local authorities in Pemalang Regency and Batu City have initiated efforts to improve data accuracy and compliance. In Pemalang, officials are working to update motor-vehicle tax data down to the village level to set realistic targets. In Batu City, a field campaign was launched to register villas missing from taxpayer databases, utilizing digital notices and police cooperation to improve collection.

Nationally, the Indonesian government has set a tax revenue target of Rp 2,908 trillion for 2027, aiming for a 10.5% increase through economic expansion and the implementation of the Coretax technology system. Concurrently, regional governments like Kudus Regency are focusing on optimizing existing revenue sources and closing loopholes to mitigate fiscal pressures caused by reduced central government transfers, while avoiding direct increases to tax rates.