The government is optimistic that it can achieve its targeted tax ratio of 11% to 12% in 2026 without placing a strain on the business community. Minister of Finance Purbaya Yudhi Sadewa emphasized that boosting tax revenues will be pursued without “shooting fish in a barrel”.
Purbaya explained that Indonesia’s tax ratio cannot be judged solely on the first half of 2026 performance, as the metric requires full-year data to reflect economic conditions accurately.
“The tax ratio must be calculated on a full-year basis. We need to wait until year-end to see the final figures,” Purbaya noted at a press conference at the Ministry of Finance, Jakarta, Wednesday (5/8/2026).
Regardless, Purbaya pointed out that tax revenue performance through the first half of 2026 demonstrates a positive trajectory. The government, he added, is seeking to improve state revenue without placing pressure on businesses.
“My approach is to make sure tax revenue grows well without ‘shooting fish in a barrel’,” he said.
According to Purbaya, tax revenue has so far grown by around 24%. With this trend, the tax ratio is expected to increase gradually through the end of the year.
“Tax revenue growth has already reached 24%. Naturally, the tax ratio will gradually climb, but we will wait for the year-end figures,” he said.
Purbaya also expressed confidence that the tax revenue target is achievable, adding that the government is preparing specific tax measures to support revenue collection in the second half of 2026.
“I am confident it is feasible, as we will soon be taking several measures on the tax side,” he said.
By the end of June 2026, total tax collections reached IDR 1,035.7 trillion, a 24.6% increase year-over-year (YoY), which represents 43.9% of the 2026 state budget target.
Value-added tax (VAT) and luxury-goods sales tax were the primary growth drivers, yielding IDR 380 trillion, up 42.2% YoY.
On the other hand, corporate income tax receipts and related deposits reached IDR 196.1 trillion, up 28.6%. Article 21 individual income tax and deposits totaled IDR 146 trillion, up 13.6%, while final income tax, article 22 income tax, and article 26 income tax grew by 1.4% to IDR 159.9 trillion.
Based on the first half of 2026 data, Indonesia’s narrow tax ratio reached 9.32%, up from 8.42% YoY. The figure was calculated using total tax and customs revenue of IDR 1,187.8 trillion against a nominal GDP of IDR 12,739.3 trillion.
When non-tax state revenue for the natural resources sector is included, the broad tax ratio reached 10.44%, compared with 9.31% in the first half of 2025.
Quarterly trends also showed expansion. In the first quarter of 2026, the narrow tax ratio rose to 7.48% from 7.06% in the first quarter of 2025. Meanwhile, the broad tax ratio increased from 7.95% to 8.35%.
In the second quarter of 2026, the narrow tax ratio jumped to 11.07% from 9.72% YoY, while the broad tax ratio expanded to 12.42% from 10.60%.
Cumulatively, the narrow tax ratio in the first half of 2026 grew by 0.90 percentage points YoY, while the broad tax ratio increased by 1.13 percentage points.
The government is targeting a tax ratio of 11% to 12% in 2026. In 2025, Indonesia’s tax-to-GDP ratio stood at 9.31%.
Also Read:
Complete List of Tax Account Codes and Tax Payment Type Codes for e-Billing
DGT Regulation Number 11 of 2025
Breaking Down the Article 21 Withholding Tax Provisions
