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.
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)
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.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.
