Finance Ministry Reveals Under-Luxury Tax Revenue Up 41.3 Percent

Indonesia's tax revenue has shown robust growth, reaching a 22.1% year-on-year increase by the end of May 2026. This performance contradicts assertions that the country's business sector is experiencing a slowdown, according to Finance Minister Purbaya Yudhi Sadewa.

Sadewa stated that the tax revenue growth is higher than the 16.1% recorded by April 2026. He attributed this increase to strengthening national economic activity and improved implementation of the Coretax system. "Tax revenue continues the positive growth trend in line with economic activity growth and better Coretax implementation," Sadewa said during a press conference.

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Tax revenue continues the positive growth trend in line with economic activity growth and better Coretax implementation.

A significant contributor to this growth was corporate income tax (PPh Badan) and corporate deposit tax, which collectively rose by 23.9% to Rp167.6 trillion by May 2026. "This shows that companies are still growing and performing well. Previous concerns that the business world was slowing down have not been proven," Sadewa added.

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This shows that companies are still growing and performing well. Previous concerns that the business world was slowing down have not been proven.

Furthermore, revenue from Value Added Tax (PPN) and the Tax on Luxury Goods Sales (PPnBM) also saw strong performance, increasing by 41.3% year-on-year to Rp315.7 trillion by May 2026. Sadewa views this surge as a reflection of sustained strong domestic consumption and maintained public purchasing power.

The performance of key economic sectors is also evident in tax receipts. The trade sector recorded a 52.4% increase in revenue, followed by mining at 28.2% and the processing industry at 19.7%. This indicates that real economic activities remain dynamic and continue to expand.

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PPN and PPnBM as consumption taxes increased significantly in line with strong domestic consumption and maintained purchasing power.