2025 Tax Revenue Shortfall Widens to Rp1,917.6 Trillion

The Ministry of Finance recorded Indonesia’s 2025 tax revenue realization at Rp1,917.6 trillion, which is equal to 87.6% of the targeted 2025 State Budget of Rp2,189.3 trillion, widening the tax shortfall to 2.92% of the Gross Domestic Product (PDB). Meanwhile, the 2026 tax revenue was set at Rp2,357.7 trillion or 13.5% higher than the realized outlook in 2025. The Indonesian Government has stated that there will be no tax increase to maintain business climate and to fully rely on the effectiveness of the tax reform, specifically the move from self-assessment system to the verified assessment (Core Tax).