As Indonesia works toward increasingly ambitious revenue targets, Minister of Finance Purbaya Yudhi Sadewa introduced a new approach to tax policy. While taxes have traditionally been viewed as a burden on businesses, the government is adopting a more sustainable perspective. Minister of Finance Purbaya emphasized that compliant taxpayers must be nurtured to remain productive, rather than pressured.
The approach is captured in what Purbaya calls the “golden goose” analogy, which grounds the government's fiscal strategy in 2026. According to Purbaya, businesses that consistently meet their tax obligations should not face excessive pressure that could undermine their long-term viability. Instead, the government plans to foster continued economic growth while increasing the country’s tax revenue.
Collect the Golden Eggs
Purbaya likened productive taxpayers to a goose that continually lays golden eggs, with tax payments representing those eggs.
The logic is simple. If you slaughter the goose by giving constant pressure, you will get no more golden eggs. But if you keep it healthy and productive, the eggs will keep coming.
"I won’t slaughter the golden goose. I’ll collect the eggs," said Purbaya recently at the parliamentary complex in Jakarta.
The message bears a positive signal for businesses. The government intends to avoid excessive audits or enforcement against taxpayers that already comply with tax regulations. This approach aims to build a healthier relationship between the tax authority and businesses.
Expanding the Tax Base to Pursue the IDR 2,310.8 Trillion Target
Then, how will the government pursue the IDR 2,310.8 trillion tax revenue target in 2026? Instead of raising tax rates, the government plans to focus on expanding the tax base to reach unregistered taxpayers or those who have yet to fulfill their tax obligations.
Purbaya emphasized that the government is not seeking to squeeze more revenue from existing taxpayers, but rather to broaden the tax base. Leveraging data and advanced technology, this strategy makes tax oversight both more precise and effective.
The digital economy remains one of the government’s priority sectors, with efforts focused on optimizing income tax and value-added tax (VAT) collection from digital platforms and e-commerce transactions.
The government is also targeting the informal sector and the shadow economy, where significant economic activity remains outside formal tax administration, posing a major challenge to compliance efforts.
Purbaya stressed that the objective is fairness rather than imposing additional burdens.
"We are not raising tax rates. But those who are required to pay taxes must fulfill their obligations," he reiterated.
Why Expanding the Tax Base Matters
A broader tax base not only increases state revenue but also creates greater fiscal space. Higher tax revenue expands the government's capacity to fund a range of development initiatives and public services.
Additional revenue can support strategic state programs, such as infrastructure projects, improving healthcare and education quality, enhancing targeted social assistance programs, and promoting national economic growth. Increased state revenue ultimately provides greater fiscal flexibility for the government to deliver tangible benefits back to the public.
According to Purbaya, Increased state revenue ultimately provides greater fiscal flexibility for the government to deliver tangible benefits back to the public.
"If we have more revenue, we can return more benefits to the public," he said.
Balancing Revenue and Growth
Although tax revenue in the first half of 2026 grew by 21.4% compared with the previous year, achieving the full-year target remains challenging. Through its “golden goose” strategy, the government tries to strike a balance between maintaining a healthy business environment and ensuring sustainable growth in state revenue.
Tax compliance, base expansion, and data technology strive to ground the strategy. Ultimately, it allows the government to foster a fairer tax system, grow state revenue without overburdening compliant taxpayers, and establish a healthier partnership with businesses.
Also read:
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The Chart of Accounts for Coretax Reporting
Article 26 Withholding Tax on Foreign Taxpayers
