Tax Freeze: Indonesia Denies Wealth Tax and Toll Road VAT Amid Purchasing Power Concerns

JAKARTA, Investortrust.id — Indonesia is slamming the brakes on controversial new tax levies. Finance Minister Purbaya Yudhi Sadewa announced on Friday that the government will not impose a "Wealth Tax" or Value Added Tax (VAT) on toll roads until the nation’s purchasing power and broader economic indicators show a significant rebound.

For investors and the middle class, this "tax holiday" on new levies provides much-needed breathing room. By pegging tax hikes to a 6% GDP growth target, the Ministry of Finance (Kemenkeu) is prioritizing domestic consumption over immediate revenue collection. This pro-growth stance signals that Jakarta is wary of stifling the recovery of the "real economy" with premature fiscal tightening.

The 6% Growth Threshold

The Finance Minister made it clear that "economic health and purchasing power" are the ultimate benchmarks for any policy shift. During a media briefing at the Financial Education and Training Agency (BPPK), Purbaya noted that while these taxes exist in long-term strategic documents, they are not on the immediate agenda.

"Before there is a significant improvement in purchasing power and the economy, we will not implement new taxes or increase current rates," Purbaya stated on April 24, 2026. He further clarified that an economic growth rate nearing 6% is the primary indicator required to ensure that new taxes do not disrupt the country's economic trajectory.

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Cracking Down on Corporate Evaders

Instead of squeezing the general public, the Treasury is turning its sights on corporate non-compliance. The Ministry plans to intensify law enforcement against firms engaged in "under-invoicing" for exports and deliberate misreporting.

Specifically, Purbaya called out the steel and construction industries as areas of concern. "There are steel companies that I say are running their businesses improperly, as well as many construction firms; we will chase them," the Finance Minister warned, indicating that the government prefers optimizing existing revenue streams over creating new ones.

The Industry Response: CMNP and Jusuf Hamka

The private sector’s reaction to the potential toll road VAT has been one of cautious cooperation. Jusuf Hamka, the prominent boss of toll road giant PT Citra Marga Nusaphala Persada Tbk (CMNP), expressed readiness to follow the government’s lead but highlighted an outstanding financial grievance.

"We follow what the government wants, but don't forget there is an obligation to us of Rp 800 billion ($50.3 million)," Jusuf said, referring to a long-standing debt the government owes his company following a Supreme Court victory. Jusuf suggested that while he supports revenue-raising measures, the government must also fulfill its debt obligations to infrastructure players who are "building the nation."

The Long-Term Roadmap

While the immediate threat of a wealth tax has subsided, it remains on the horizon. The Directorate General of Taxes' Strategic Plan for 2025-2029 still includes regulations for High Wealth Individuals (HWI), carbon taxes, and digital transaction taxes, but these are now largely earmarked for a 2028 rollout. For now, the administration is focusing on a "clean-up" of the current system to ensure a more orderly and fair tax regime.