Indonesia may introduce new taxes if economy hits 6% growth by 2027

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has signaled a potential for new taxes if the nation's economic growth consistently hits 6 percent by 2027. However, Sadewa emphasized that such a policy would not be implemented solely based on achieving this growth rate in a single quarter.

"If it's only one quarter, it's not possible yet, but the room for it will be wide open. We will see what the public's purchasing power is really like," Sadewa stated during a press conference in Jakarta on Friday, August 14, 2026. He explained that the government would carefully assess the public's purchasing power before deciding on any new tax measures. The opportunity for new taxes would become more significant if the economy grows by 6 percent in 2026 and continues to expand at the same rate or higher in the first quarter of 2027.

Sadewa had previously set a target of 6 percent economic growth for 2027 as part of the government's broader strategy to move beyond the current 5 percent growth range. Despite the potential for new revenue streams, the minister reiterated that the government would remain mindful of the public's economic conditions before imposing additional tax burdens.

In addition to potential new taxes, the government is also considering an increase in excise taxes on tobacco products. Discussions with the House of Representatives are expected to take place after August 17, 2026. Sadewa indicated that this policy aims to bring illegal tobacco products into the legal market, after which the government would crack down on illicit trade. "The goal is for illegal ones to enter the legal realm, so I can close all the illegal ones after that," he said.