Jakarta. The government’s goal to raise the state revenue ratio to 23 percent of gross domestic product (GDP) under the 2025 Government Work Plan (RKP) is seen as unrealistic in the short term, according to Permata Bank Chief Economist Josua Pardede.

“With the current low double-digit baseline, jumping to 23 percent can’t be achieved annually, it requires a well-measured, multi-year strategy,” Josua said.

He outlined four key reform areas to strengthen revenue collection sustainably.

First, administration and data integration must be improved. Josua urged the government to accelerate the Coretax system upgrade and enhance data connectivity among agencies such as the Tax Directorate General, Customs, Statistics Indonesia (BPS), financial institutions, and digital platforms. “Accurate tax base expansion depends on robust data integration,” he said.

Second, broadening the tax base and refining fiscal policy are essential. This includes reviewing value-added tax (VAT) exemptions, strengthening excise collection, and revising personal income tax (PPh) rules for high earners and professionals. Josua also highlighted the need to regulate taxes on the digital and secondary economies, such as rental and online retail sectors, while gradually introducing a fair carbon tax scheme.

Third, on non-tax revenues (PNBP) and state-owned enterprise (SOE) dividends, Josua called for governance reforms through service-based tariffs, asset monetization, and revised dividend policies to boost SOE performance. “This aligns with the RKP’s agenda to reform PNBP management and optimize SOE dividends,” he added.

Lastly, fiscal reform at the regional level remains critical. Josua stressed the importance of aligning central and local tax systems, conducting sectoral and regional tax mapping, and fostering compliance cooperation to ensure higher central revenues do not erode local income.

“These four clusters form the foundation for lifting the revenue-to-GDP ratio toward 23 percent,” Josua said, adding that the goal would be “realistically achievable” only within the next three to five years.

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