February 9, 2026 | 11:02 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa admitted there is no exact figure for the ideal tax ratio for the 2026 State Budget. According to him, Indonesia's tax structure has high rigidity, making it difficult to change the tax ratio quickly.
"It's hard to determine the ideal figure, I don't know," said Purbaya when met in Jakarta, Monday, February 9, 2026.
For decades, Indonesia's tax ratio has stagnated with no significant changes, making it harder to determine the ideal figure, despite growing expenditures.
He mentioned that an 11-12 percent tax ratio would be sufficient to support the State Budget. Even achieving a level of 11-11.5 percent is seen as better for fiscal space than current conditions.
Nevertheless, Purbaya emphasized that raising the tax ratio is not an easy matter. It requires extra work and comprehensive improvement, ranging from system upgrades to changes in the behavior of tax officials.
This, he said, demanded a notable commitment from all levels of the Ministry of Finance.
The government is aiming to raise the tax ratio from around 9 percent to 11-12 percent this year. This target becomes a challenging mission for tax authorities, considering that the improvement in state revenue collection performance depends not only on economic growth but also on how effective the system is and the integrity of tax officials.
The Indonesian government could reason the shortfall of tax revenue last year by citing economic slowdown. But it no longer becomes relevant in 2026, if the economy improves but tax collection remains stagnant.
Indonesia's tax ratio has historically fluctuated. After being around 10.08 percent in 2024, the tax ratio slipped to around 9 percent in 2025. The tax ratio even plummeted to 8.42 percent in last year's first half and stood at 8.58 percent in the third quarter of 2025, according to the Tax DG.
The decrease approached the lowest point of Indonesia's tax ratio in the 2020-2021 period, which was around 8.33-9.11 percent due to the Covid-19 pandemic. After that, the tax ratio briefly improved and rose to 10.39 percent in 2022 and 10.31 percent in 2023, driven by tax reform through the Harmonization of Tax Regulation Law and the booming commodity prices.
Although the tax ratio weakened again in 2025, Purbaya expressed optimism that internal improvements within the Ministry of Finance can help boost the tax ratio in 2026. The steps include employee rotation, strenghtening management, as well as administrative and supervisory system improvements.
Read: Purbaya Calls KPK Arrests 'Therapy' for Tax and Customs Officials
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