Sri Mulyani Pledges No Tax Increases in 2026 as State revenue surpasses Rp 200 Trillion
Jakarta, Indonesia – April 30, 2025 – Indonesian Finance Minister Sri Mulyani Indrawati affirmed today that the government will not raise tax rates in 2026, despite a significant surge in state revenue. The commitment comes as state deposits reached Rp 200 trillion (approximately $12.6 billion USD) at the end of March,bolstering the nation’s fiscal position.
This assurance aims to provide stability for Indonesian taxpayers and businesses, signaling a continued focus on economic growth without increasing the financial burden on those already contributing. According to a statement released by the Ministry of Finance, the government intends to maintain current tax policies while prioritizing assistance to vulnerable populations and those struggling to meet their tax obligations. “Those who are obliged to pay taxes continue to pay taxes easily and obediently while those who are not able and still weak are helped to the maximum,” Indrawati stated.The revenue increase is attributed to a combination of factors, including improved tax compliance and a strengthening economy. The government’s strategy emphasizes a balance between maximizing revenue collection from capable taxpayers and providing support to those facing economic hardship. This approach reflects a broader commitment to inclusive growth and social welfare.
Indonesia’s tax system has undergone several reforms in recent years, aimed at broadening the tax base and improving efficiency. These efforts have contributed to the recent increase in state revenue, allowing the government to maintain its pledge of no new tax increases in the coming year.