Indonesia’s tax revenue performance in 2025 reflects a complex fiscal landscape, with collections reaching Rp990 trillion by the end of July—down 5.29% from the same period in 2024. Despite the contraction, the tax contribution to total state revenue has increased, signaling improved efficiency and policy alignment. As the government prepares for a more ambitious 2026 target, fiscal resilience remains a central priority.
Key Facts & Background:
- Tax revenue (net) as of July 2025: Rp990 trillion, down 5.29% YoY from Rp1,045.3 trillion in July 2024.
- Gross tax revenue (before restitutions): Rp1,269.4 trillion, up 2.3% YoY.
- Tax contribution to state revenue increased by 1.67% YoY (January–July 2025).
- Total state revenue by July 2025: Rp1,428.6 trillion.
- Customs and excise: Rp171.1 trillion
- Non-tax state revenue (PNBP): Rp266.2 trillion
- Grants: Rp1.3 trillion
- 2026 tax revenue target: Rp2,358 trillion with a tax ratio of 9.33%.
- 2026 PNBP target: Rp455 trillion, down 4.7% from 2025 outlook.
Strategic Insights:
The decline in net tax revenue underscores the challenges of balancing fiscal expansion with economic headwinds. While gross collections show modest growth, rising restitutions and sectoral slowdowns have weighed on net performance. The increased contribution of tax to overall revenue suggests improved compliance and collection mechanisms, possibly driven by digitalization and policy reforms. Looking ahead, the ambitious 2026 target will require stronger tax base expansion, enhanced enforcement, and sustained economic growth. The government’s ability to maintain fiscal credibility while navigating investor sentiment—especially under new leadership—will be critical. As Indonesia continues to modernize its tax system, transparency, predictability, and stakeholder engagement will shape long-term fiscal sustainability.