The Directorate General of Taxes (DGT) of the Ministry of Finance (MoF) has reaffirmed that the higher tax revenue target set in the 2027 State Budget will not affect the government’s commitment to fulfilling taxpayers’ rights to tax refunds.
Director General of Taxes Bimo Wijayanto said tax refunds would continue to be granted to taxpayers that meet the applicable requirements. The DGT will ensure that each refund application is processed in accordance with established procedures, with due regard to timeliness and accountability.
“The DGT will, of course, continue to process and disburse refunds that meet the requirements in accordance with the applicable provisions, in a timely and accountable manner,” Bimo said in Bogor on Thursday (Oct. 1, 2026).
Bimo added that the processing of tax refunds must continue alongside the government’s efforts to safeguard state revenue. Therefore, all refund processes will be carried out in accordance with prevailing laws and regulations and the Ministry of Finance’s directives.
“At the same time, we will maintain the integrity of state revenue as mandated by law and as instructed by our leadership,” he said.
The assurance regarding tax refunds came as the government set a higher tax revenue target for 2027. Under the 2027 State Budget, tax revenue is targeted at Rp2,593.4 trillion, up Rp282.6 trillion, or 12.2%, from the 2026 tax revenue outlook of Rp2,310.8 trillion.
Compared with tax revenue realizations and outlooks in previous years, the 2027 target is the highest for the 2016-2027 period. Tax revenue stood at Rp1,106 trillion in 2016. The upward trend continued in the following years before revenue came under pressure in 2020 due to the pandemic and economic slowdown.
Tax revenue fell 19.6% to Rp1,072.1 trillion in 2020. A year later, revenue rebounded 19.3% to Rp1,278.7 trillion. Positive growth continued in 2022, when tax revenue surged 34.3% to Rp1,716.8 trillion. In 2023, revenue grew 8.8% to Rp1,867.9 trillion.
Tax revenue then reached Rp1,931.6 trillion in 2024. In 2025, however, revenue declined 0.7% to Rp1,917.9 trillion. For 2026, the government expects tax revenue to reach Rp2,310.8 trillion, representing 20.5% growth from the previous year.
Tax Ratio and Buoyancy
In addition to raising the revenue target, the government has set a tax ratio target of 9.26% for 2027, the highest target in about a decade.
Bimo explained that the higher tax ratio would be supported by improvements in tax administration, an expansion of the tax base, and greater use of technology in tax collection and oversight.
“The tax ratio, as an indicator of tax performance, is targeted at 9.26% in 2027. Thankfully, it is expected to return to above 9%,” Bimo said.
He said Indonesia had been unable to sustain a tax ratio above 9% over the past decade. The previous high was around 8.9% in 2016.
The government has again set a tax ratio target above 9%, both in the 2026 outlook and the 2027 State Budget. Efforts to achieve the target will focus on improving tax administration and expanding the tax base.
Improvements in tax performance indicators are also reflected in the projected tax buoyancy. The government expects the indicator to reach 2.49 in the 2026 outlook and 1.41 under the 2027 State Budget.
Tax buoyancy measures the change in tax revenue relative to changes in economic activity. With a projected tax buoyancy of 1.41, a 1% increase in economic activity in 2027 is expected to generate a 1.41% increase in tax revenue.
Bimo said the projection indicates that tax revenue is expected to grow faster than the economy.
“The increase in tax buoyancy in 2026 and 2027 shows that projected tax revenue growth is higher than economic growth,” he said.
To achieve the target, the DGT will continue to improve tax administration, expand the tax base, and increase the use of Coretax.
The use of data and technology will also be strengthened to support tax oversight and collection. Coretax will continue to be developed to simplify administrative processes and make them more user-friendly, while enabling the integration of data from internal and external sources.
“Going forward, higher tax ratios and tax buoyancy, supported by stronger tax administration, a broader tax base, and more optimal implementation of Coretax, will further improve the effectiveness of tax collection,” Bimo said.
Broader Tax Oversight
The DGT is also preparing strategies to reach a wider range of revenue sources. These include using data and technology to identify digital economic activities, the informal sector, and the shadow economy.
Oversight of digital transactions and e-commerce activities will also be strengthened. One of the instruments being used is the implementation of Article 22 income tax on e-commerce transactions at a rate of 0.5%.
At the same time, the DGT will simplify the mechanism for tax exemption statements for micro, small, and medium-sized enterprises (MSMEs). The policy is intended to provide protection for businesses with annual turnover of less than Rp500 million.
Oversight will also target taxpayers within the same business group, transactions with related parties, underinvoicing practices, transfer pricing, and prominent individual taxpayers.
Also Read:
Tax Refunds Are a Right, Not a Fiscal Favor
What Is Tax in Indonesia?
Breaking Down the Article 21 Withholding Tax Provisions
