Indonesia’s Finance Minister Purbaya Yudhi Sadewa expressed strong confidence that the nation is on track to achieve its ambitious state revenue target of Rp 3,153.6 trillion this year. He emphasized that a series of strategic enhancements across the customs and tax sectors, notably including the innovative Core Tax system, are poised to significantly boost national income in 2026.
The Core Tax system, while now a cornerstone of revenue enhancement, was initially met with considerable resistance from taxpayers, according to Minister Purbaya. Speaking after Eid al-Adha prayers at the Directorate General of Taxes headquarters in Jakarta on Wednesday, May 27, 2026, he noted, “Protests still exist, but they are now significantly fewer. Crucially, the Core Tax system’s performance is demonstrably increasing tax revenues, addressing previous shortfalls and contributing to a more robust fiscal outlook.”
Minister Purbaya further elaborated that this sophisticated system, developed by the Ministry of Finance, automates almost all tax calculations. This automation makes it considerably more challenging for taxpayers to evade their payment obligations, a key factor driving the surge in collections. “This is precisely why revenue generated through the Core Tax system has seen a significantly greater increase compared to previous years,” he affirmed.
Beyond the Core Tax system, the nation’s chief financial steward remains convinced that the comprehensive restructuring efforts within both the tax and customs and excise sectors will ensure the realization of the state revenue target. The government is steadfast in its commitment to leveraging advanced technology to continuously enhance and optimize revenue collection.
Looking ahead, the Ministry of Finance is also poised to optimize the utilization of Artificial Intelligence (AI) to further elevate revenue streams within both the Directorate General of Taxes and the Directorate General of Customs and Excise. “Therefore, it appears this year’s targets are well on track for success,” Minister Purbaya concluded optimistically.
Supporting this positive outlook, data from the Ministry of Finance up to April 2026 reveals that state revenue has already surpassed Rp 918.4 trillion, marking an impressive 13 percent growth compared to the same period last year. This substantial increase in collections is primarily driven by a robust 16.1 percent surge in tax revenue performance. Specific contributors include a 25 percent rise in Personal Income Tax (PPh Orang Pribadi), a 21 percent growth in PPh 21 (employee payroll tax), and a remarkable 40 percent jump in Value Added Tax (PPN) and Luxury Goods Sales Tax (PPN-BM).
The 2026 State Budget (APBN) is meticulously designed with a target state revenue of Rp 3,153.6 trillion against state expenditures of Rp 3,842.7 trillion. Consequently, the projected budget deficit stands at Rp 689.1 trillion, representing 2.68 percent of the Gross Domestic Product (GDP).
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Summary
Indonesia’s Finance Minister Purbaya Yudhi Sadewa is highly optimistic about achieving the Rp 3,153.6 trillion state revenue target for the current year. This confidence is attributed to strategic enhancements in the customs and tax sectors, notably the Core Tax system. Although initially met with resistance, the Core Tax system is now demonstrably increasing tax revenues by automating calculations and making evasion more challenging. The Ministry of Finance also plans to leverage Artificial Intelligence to further optimize revenue collection.
Supporting this positive outlook, state revenue reached Rp 918.4 trillion by April 2026, marking a 13 percent growth year-on-year. This increase is primarily driven by a 16.1 percent surge in tax revenue, including significant rises in Personal Income Tax, PPh 21, and Value Added Tax. The 2026 State Budget targets Rp 3,153.6 trillion in revenue against Rp 3,842.7 trillion in expenditures, projecting a 2.68 percent budget deficit relative to GDP.