Jakarta, February 9, 2026 — Minister of Finance Purbaya Yudhi Sadewa stated that there is no precise benchmark for Indonesia’s ideal tax ratio in the 2026 State Budget (APBN), citing the rigid structure of the national tax system that limits rapid adjustment.
“It is difficult to determine the ideal figure. I don’t know,” Minister Purbaya said when speaking to reporters in Jakarta on Monday. He noted that Indonesia’s tax ratio has remained largely stagnant for decades, despite continuous growth in government expenditure.
According to the Minister, a tax ratio in the range of 11–12 percent would be sufficient to support the State Budget. He added that even achieving a level of 11–11.5 percent would provide significantly better fiscal space compared to current conditions.
However, Purbaya emphasized that increasing the tax ratio is a complex task that requires comprehensive and sustained efforts. These include system modernization, administrative reform, and changes in the conduct and performance of tax officials, which demand strong commitment across all levels of the Ministry of Finance.
The government is targeting an increase in the tax ratio from around 9 percent to 11–12 percent in 2026, a challenging objective given that revenue performance depends not only on economic growth but also on the effectiveness of tax administration and the integrity of tax officials.
Purbaya noted that while revenue shortfalls in previous years could be attributed to economic slowdown, such justification would no longer be valid if economic conditions improve but tax collection remains weak.
Historically, Indonesia’s tax ratio has fluctuated. After reaching 10.08 percent in 2024, it declined to around 9 percent in 2025. Data from the Directorate General of Taxes show the ratio fell to 8.42 percent in the first half of 2025 and stood at 8.58 percent in the third quarter, approaching levels seen during the 2020–2021 COVID-19 pandemic, when the ratio ranged between 8.33 and 9.11 percent.
Following that period, the tax ratio improved to 10.39 percent in 2022 and 10.31 percent in 2023, driven by tax reforms under the Harmonization of Tax Regulations Law and elevated global commodity prices.
Despite the renewed decline in 2025, Minister Purbaya expressed optimism that internal reforms within the Ministry of Finance—including staff rotation, strengthened management, and enhanced administrative and supervisory systems—will help improve tax performance and support fiscal sustainability in 2026.
