Tax Revenue Slows in 2025 as Purbaya Vows Deficit Stays Below 3% of GDP
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JAKARTA, Investortrust.id — Indonesia’s Finance Minister Purbaya Yudhi Sadewa says the government maintains the budget deficit remains below 3 percent of gross domestic product as weak tax revenue challenges the fiscal outlook for 2025.
Tax revenue reached Rp 1,295.3 trillion, equal to 62.4 percent of the 2025 outlook, raising concerns that the shortfall could widen the deficit.
Purbaya said he reviewed full-year fiscal projections during an asset and liability management committee meeting on Friday, Nov 14, 2025, and stressed that fiscal discipline would be preserved.
“We held an ALCO meeting to review the government’s revenue position through year-end,” Purbaya said during a media briefing in Jakarta.
He added that the fiscal team had already run the full calculations for 2025. “We will continue to maintain the deficit below 3 percent of GDP. Keeping the deficit safely below 3 percent is the most important target,” he said.
The government projects the 2025 deficit at Rp 662 trillion or 2.78 percent of GDP, higher than the earlier target of Rp 616.2 trillion or 2.53 percent of GDP.
Purbaya said tax authorities would intensify collection efforts, including contacting taxpayers who had not fulfilled their obligations on time.
“There are several hundred business owners who have not paid their taxes on time, and we will be sending them ‘love letters’ to remind them to pay promptly,” he said.
He added the government would also enforce stricter oversight of spending absorption, although most ministries and agencies remained on track with their budget plans.