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View all search resultsGovt expects full-year tax shortfall despite strong growth in first half
Indonesia has completed the first half of 2026 with strong growth in tax revenue but the government expects the full year to conclude with a Rp 47 trillion (US$2.6 billion) shortfall.
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Finance Minister Purbaya Yudhi Sadewa's face is displayed on a screen on Dec. 3, 2025, during his speech in the main hall of the Indonesia Stock Exchange (IDX) building in South Jakarta. (JP/Deni Ghifari)
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ndonesia has completed the first half of 2026 with strong growth in tax revenue, but the government expects the full year to conclude with a Rp 47 trillion (US$2.6 billion) shortfall.
Speaking before House of Representatives Commission XI, which oversees financial affairs, Finance Minister Purbaya Yudhi Sadewa revealed that tax revenue grew 24.6 percent year-on-year (yoy) to Rp 1.03 quadrillion in the first half, or 44 percent of the full-year target of Rp 2.35 quadrillion.
The first-half reading was “not as ideal as many people expected”, Purbaya admitted, “but it’s a significant increase nonetheless.”
“We’ll keep trying to improve it going forward without increasing tax rates, […] but we’ll undertake extensification and we’ll conduct stricter discipline in tax collection,” the minister said on Tuesday.
Tax collection in last year’s first half had been particularly weak by virtue of a malfunctioning new tax administration system called Coretax, which Purbaya said “still has faults” but has been far improved and helped a lot in ramping up tax revenue.
The strong collection growth in this year’s first half was recorded across the board, with value-added tax and luxury tax income surging 42.2 percent yoy, which Purbaya said “demonstrated economic recovery”.
Corporate and individual income tax revenue increased by 28.6 and 13.6 percent yoy, respectively.
