Indonesia to Expand Tax Base Without Raising Rates, Boost Energy Infrastructure

Indonesian Finance Minister Purbaya Yudhi Sadewa stated that the government is closely monitoring global oil prices and mitigating risks to national energy stability. He emphasized the acceleration of energy infrastructure development to increase the utilization of domestic energy sources and reduce reliance on foreign supplies.

"The government strives to build energy infrastructure to support the utilization of domestic energy sources to reduce dependence on foreign energy sources," Purbaya said during the 25th Plenary Session of the DPR for Session Period V of the 2025–2026 session in Jakarta on Tuesday, July 14, 2026. His remarks responded to the DPR factions' views on the accountability of the 2025 State Budget execution.

Purbaya appreciated the National Awakening Party (PAN) faction's assessment of state revenue realization in 2025. He stated this appreciation encourages the government to strengthen the revenue base, improve service quality and data-based supervision, close loopholes, and optimize state revenue fairly and sustainably.

Addressing the Golkar Party faction's views, Purbaya outlined the government's medium-term strategy: expanding the tax base without increasing rates. This will be achieved by leveraging data and technology to reach the digital economy, the shadow economy, and the informal sector, including customs and excise. The government also aims to strengthen state revenue through digitalizing services and supervision, enhancing audits and law enforcement, and combating illegal imports and the circulation of illegal excisable goods, all while maintaining the investment climate, promoting exports, and accelerating industrial downstreaming.

Furthermore, Purbaya reported that central government spending reached Rp 2,586.4 trillion, or 90.40% of the Rp 2,701.4 trillion budget. The government will continue to improve the quality of state spending to ensure every rupiah of the APBN is well-targeted, accountable, and has a tangible impact on economic growth, poverty reduction, human resource quality improvement, and equitable welfare distribution. The government welcomed views from the Prosperous Justice Party (PKS), National Mandate Party (PKB), and Democratic Party factions requesting more targeted social assistance and subsidy distribution. It also agreed with the NasDem Party faction's proposal for regulatory harmonization and data alignment, mandating all agencies to use the National Socio-Economic Single Data (DTSEN) as the primary reference.

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The government strives to build energy infrastructure to support the utilization of domestic energy sources to reduce dependence on foreign energy sources.