Indonesia's Tax Revenue Surges, PPN and PPnBM Lead Growth
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- Indonesia's tax revenue reached Rp 834.4 trillion by the end of May 2026, a 22% increase from the previous year.
- Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM) contributed the largest share, growing by 41.3% to Rp 315.7 trillion.
- The Directorate General of Taxes attributes the growth to internal reforms, including the Coretax system and intensified collection efforts.
Indonesia's tax revenue has seen a significant surge, reaching Rp 834.4 trillion in net terms by the end of May 2026. This figure represents a substantial 22% increase compared to the Rp 683.3 trillion collected during the same period in the previous year. The Directorate General of Taxes (DJP) reported that almost all major tax types experienced growth.
The largest contributors to this impressive revenue were Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM), which together generated Rp 315.7 trillion. This segment alone saw a remarkable jump of 41.3%. Other significant contributors included corporate income tax (PPh badan) and its deposits, totaling Rp 167.6 trillion (a 23.9% increase), and individual income tax (PPh orang pribadi) and PPh 21, which rose by 26% to Rp 123.1 trillion.
Director General of Taxes Bimo Wijayanto attributed this success to ongoing internal reforms and intensified collection efforts. Key initiatives include improvements in core activities like supervision, examination, billing, and law enforcement. The Coretax system, alongside a more stable infrastructure and improved service quality, also played a crucial role in boosting revenue collection. Wijayanto also requested an budget of Rp 5.4 trillion for the DJP for the upcoming period, intended for tax revenue management and administrative support.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.