Tax revenue reached IDR 1,607.6 trillion as of September 30, 2026, equivalent to 68.2% of the 2026 State Budget (APBN) target. Revenue grew 24.1% year on year, supported by stronger economic activity and improvements in tax administration through the Coretax system.
Finance Minister Suahasil Nazara said improvements in the implementation of Coretax had contributed to tax revenue growth. The government has also begun easing its management of tax refunds.
Speaking at a press conference on the state budget, known as APBN KiTa, at the Finance Ministry's office in Jakarta on Friday (October 9, 2026), Suahasil explained that improvements to the tax system were being accompanied by adjustments to tax refund policies.
“The contributing factors include better implementation of Coretax. At the same time, we recognize that we will soon ease tax refund management, and colleagues at the Directorate General of Taxes (DGT) have begun implementing these measures,” Suahasil said.
Income Tax and VAT Revenue Increase
By tax category, non-oil and gas income tax revenue reached IDR 809.3 trillion, up 17.6% year on year. Meanwhile, oil and gas income tax revenue rose 128.2% to IDR 43.6 trillion, in line with higher crude oil prices.
Value-added tax (VAT) and luxury goods sales tax (LGST) revenue totaled IDR 683.3 trillion, an increase of 38.6% from the same period last year. In contrast, land and building tax (PBB) and other tax revenue fell 24.8% to IDR 71.4 trillion.
By individual tax type, Article 21 income tax revenue reached IDR 189.4 trillion, up 19%. The increase was supported by higher employee incomes and improvements in tax administration through Coretax.
Corporate income tax revenue reached IDR 276.7 trillion, an increase of 29%. Growth was primarily driven by sectors associated with palm oil, following an increase in the commodity's price.
Meanwhile, domestic VAT revenue reached IDR 369.5 trillion, up 51.3%. One of the contributing factors was increased wholesale trading activity in fuel. Suahasil expects domestic VAT growth to moderate as tax refund management is eased.
“Domestic VAT growth will moderate. It is currently up 51.3%, and moderation will follow as tax refunds are managed under the revised approach,” he said.
Import VAT revenue reached IDR 293.9 trillion, up 28.1%. The increase was influenced by higher oil prices and a weaker rupiah.
State Budget Deficit Reaches IDR 319 Trillion
As of September 30, 2026, the state budget recorded a deficit of IDR 319 trillion, equivalent to 1.24% of gross domestic product (GDP). Suahasil said the position remained in line with the 2026 State Budget plan.
The initial 2026 budget set a deficit target of IDR 689.1 trillion, or 2.68% of GDP.
“This is on track. We are moving toward implementing a state budget that was designed from the outset to run a deficit,” Suahasil said.
During the same period, state revenue reached IDR 2,341.5 trillion, equivalent to 74.2% of the budget target. This represented a 25.5% increase from the same period last year.
Tax revenue and customs and excise receipts contributed IDR 1,847.7 trillion, equivalent to 68.6% of the target and up 21.8% year on year. This comprised tax revenue of IDR 1,607.6 trillion, or 68.2% of the target, and customs and excise receipts of IDR 240.1 trillion, or 71.5% of the target.
Customs and excise receipts increased 8.5% from the same period last year. Outside tax revenue, non-tax state revenue (PNBP) reached IDR 492.3 trillion, equivalent to 107.2% of the budget target and up 41.7% year on year.
State Spending Grows 19%
State expenditure reached IDR 2,660.5 trillion as of the end of September 2026, equivalent to 69.2% of the budget allocation. This represented a 19% increase from the same period last year.
Central government expenditure reached IDR 2,061.3 trillion, or 65.4% of the allocation, growing 29.6% year on year. Of this amount, spending by ministries and agencies totaled IDR 1,069.4 trillion, equivalent to 70.8% of the budget allocation. Realization increased 33.5% from the same period last year.
Meanwhile, non-ministerial and non-agency expenditure reached IDR 991.9 trillion, or 60.5% of the allocation, up 25.7% year on year. In contrast to central government spending, transfers to regional governments declined.
As of the end of September 2026, regional transfers totaled IDR 599.2 trillion, equivalent to 86.5% of the budget allocation, down 7.1% from the same period last year.
Across overall budget implementation, the primary balance recorded a surplus of IDR 125.5 trillion. This reversed the position projected in the initial 2026 budget, which envisaged a primary balance deficit of IDR 89.7 trillion.
Deputy Finance Ministers' Responsibilities
Suahasil also outlined the division of responsibilities among the three deputy finance ministers. The arrangement is intended to clarify each official's priorities, while state budget management and the Finance Ministry's overall duties continue to be carried out through joint coordination.
“The arrangement concerns work priorities, which means the other areas will also receive attention,” Suahasil said.
Deputy Finance Minister Juda Agung oversees the financial sector, international affairs, and financing. Deputy Finance Minister Nurkholisoh Ibnu Aman focuses on state revenue, including taxation, customs and excise, and non-tax state revenue.
“We all understand how important state revenue is to the state budget,” Suahasil said.
Deputy Finance Minister Luky Alfirman is responsible for state expenditure, treasury management, and transfers to regional governments.
In addition to these respective portfolios, the finance minister and all three deputies jointly oversee management and organizational affairs, human resources, and the Finance Ministry's budget.
“We will work together, while each deputy minister will have specific areas of focus, now that the team is complete,” Suahasil said.
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Editor: Thomas Rizal
