Indonesia State Revenue Grows 21.4%, Budget Deficit Remains Controlled

Indonesia's state revenue surged by 21.4% year-on-year to Rp 1.459.4 trillion by the end of May 2026, according to the Ministry of Finance. This robust growth represents 46.3% of the 2026 State Budget target and is attributed to increased economic activity, improved tax and customs oversight, and enhanced services from ministries and public service agencies.

Despite this revenue increase, the State Budget recorded a deficit of Rp 180.4 trillion, equivalent to 0.70% of the Gross Domestic Product (GDP). The government, however, maintains that the fiscal condition remains under control. This assertion is supported by strong tax collections, which reached Rp 1.035.7 trillion, and customs and excise revenue totaling Rp 152 trillion.

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State revenue reached Rp 1,459.4 trillion, which is 46.3 percent of the APBN target, growing 21.4 percent year-on-year (yoy) compared to the same period in 2025.

Minister of Finance Purbaya Yudhi Sadewa highlighted that tax reforms are yielding promising results and are expected to improve further. Non-tax state revenues (PNBP) also contributed, reaching Rp 271 trillion, or 59% of its target. The ministry emphasized that the fiscal situation is stable, even with aggressive spending, thanks to the healthy growth in tax revenue.

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So, tax and tax organization reforms have yielded quite promising results. It will continue to improve going forward.