Purbaya Pushes Tax Ratio Drive as Fiscal Reform Intensifies

JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa said on Monday, Feb 9, 2026 in Jakarta that the government is intensifying efforts to raise Indonesia’s tax ratio to 11–12% without increasing tax rates, a push he described as physically exhausting but crucial for long term fiscal resilience. The drive comes as authorities seek to strengthen state revenues and reinforce policy credibility.

Purbaya said reaching a tax ratio of around 11.5% would already put Indonesia in a safer fiscal position, though the path remains difficult. “If we can raise it from the current level toward 11–12%, 11.5% would already be very safe, but it is not easy and requires extra effort, which is why I even fell ill,” he said at the parliamentary complex.

He stressed that the strategy did not involve raising tax rates, but instead relied on accelerating economic growth so that taxpayers would have greater capacity to contribute. Purbaya pointed to Indonesia’s recent economic growth of around 5.4% as a solid base to support higher tax collection.

Beyond growth, the government is tightening internal reforms at the Directorate General of Taxes and the Directorate General of Customs and Excise through personnel rotations and stricter oversight. Purbaya said improving institutional performance was essential to restoring trust and closing revenue leakages.

Technology has become a central pillar of the reform agenda, with the Coretax system and artificial intelligence deployed to monitor compliance and detect fraud. “We will make sure regions no longer allow tax evasion or collusion between tax officers and businesses,” he said.

Purbaya said AI systems had already uncovered widespread underinvoicing in export activities, where declared prices in Indonesia were far lower than those recorded in destination countries. “Many cases of underinvoicing have been detected, where prices here are lowered, but abroad they are double,” he said.

The latest remarks build on Purbaya’s push that started in October 2025, when he combined incentives with strict punishment to push tax reform. At that time, he promised rewards for tax officials if the tax ratio reached 12% within a year, while warning of zero tolerance for misconduct.

“If the tax ratio reaches 12% in a year, we will give incentives so there is fair treatment,” Purbaya said in October. He added that sanctions would apply equally, noting that 26 tax officials had already been dismissed as part of efforts to clean up corruption and abuse of authority within the finance ministry.

Purbaya said the dismissals were intended as a warning to others and a signal that fiscal reform remained a top priority. “If there is any misconduct, there will be no mercy,” he said, underscoring his commitment to restoring public trust in Indonesia’s tax and customs institutions.

The minister also revoked last year a memorandum of understanding with law enforcement that had shielded tax and customs officials from criminal prosecution, a move that has since led to the detention of several senior officials over alleged corruption.