Posted in

Government has no plan to raise taxes anytime soon: Purbaya

Jakarta (ANTARA) – The government has no plan to raise taxes or impose new tariffs in the near future, before the national economy and public purchasing power improve, Finance Minister Purbaya Yudhi Sadewa revealed.”The government's current focus is on improving compliance and closing tax leaks, not raising rates,” Purbaya said in his statement on Wednesday.He acknowledged that the current global turmoil has impacted the domestic economy, primarily through the weakening of the rupiah exchange rate, financial market volatility, and the risk of inflation.However, he emphasized that global economic uncertainty is a common occurrence and is experienced by many countries.In this context, Indonesia has prepared risk mitigation measures, including by strengthening domestic consumption, investment, as well as policy synergy to maintain growth.”Public spending is the biggest engine of national economic growth,” Purbaya said, citing consumption, investment, and trade as strong supporting factors for the national economy.The government also focuses on improving the growth of the private sector through the Task Force for the Acceleration of Government Strategic Programs (P2SP), which handles complaints about business obstacles or debottlenecking.Furthermore, the Ministry of Finance is strengthening synergy with law enforcement agencies, specifically the National Police (Polri), to ensure certainty for the private sector and investment, even at the regional level.”So, if there are obstacles in business or investment, you can report them directly, and law enforcement will immediately follow up,” Purbaya said.Indonesia recorded a total of Rp394.8 trillion (US$22.76 billion) in tax revenues as of March 31, 2026.Among them, the government recorded the largest revenue from value-added tax (VAT) and luxury goods sales tax (PPnBM) at Rp155.6 trillion (US$8.97 billion), a 57.7 percent year-on-year increase.