Vietnamese crab exportergood crabdouble-skinned crabs

No New Taxes Until 6% Growth, Finance Minister Says

Antara
November 14, 2025 | 5:47 pm
SHARE
Finance Minister Purbaya Yudhi Sadewa after speaking at Airlangga University Surabaya, Monday, Nov. 10, 2025. (Antara Photo/Willi Irawan)
Finance Minister Purbaya Yudhi Sadewa after speaking at Airlangga University Surabaya, Monday, Nov. 10, 2025. (Antara Photo/Willi Irawan)

Jakarta. Indonesia will not introduce any new taxes until the economy is strong enough to consistently expand by 6 percent, Finance Minister Purbaya Yudhi Sadewa said on Friday, signaling a pause on proposals that had stirred public concern, including possible excise duties on diapers and wet wipes.

“My position remains the same. Before the economy stabilizes, I will not add any new taxes,” Purbaya told reporters at the Finance Ministry in Jakarta.

The debate over expanding excisable goods resurfaced after the government issued Finance Ministry Regulation No. 70/2025 on the ministry’s 2025–2029 strategic plan. The document included a mandate to explore additional excise objects as part of broader efforts to optimize state revenue.

The ministry has completed studies on several potential new excisable items, such as diapers, single-use eating and drinking utensils, and wet wipes, as well as proposals to raise the export levy ceiling on palm oil.

ADVERTISEMENT

But Purbaya stressed that none of these measures would be implemented anytime soon. “We are not going to enforce them in the near future,” he said.

He reiterated that any expansion of excise or new tax instruments would only be considered once Indonesia achieves stable, sustained economic growth of 6 percent. Purbaya has repeatedly argued that raising taxes during periods of weak purchasing power could undermine consumption and slow the recovery.

Fiscal policy, he said, must take into account household spending capacity, particularly disposable income. Additional tax burdens risk suppressing consumption, which accounts for more than half of Indonesia’s GDP.

Instead of increasing tax rates or creating new levies, Purbaya said the government aims to stimulate economic activity to strengthen the tax base. “Growing the economy will produce healthier and more sustainable revenue,” he said.

Indonesia collected Rp 163.3 trillion (about $9.8 billion) in excise duties as of September, equivalent to 66.9 percent of the government’s full-year target, according to official data.

Tags: Keywords:
SHARE

Related Articles


Business Jun 19, 2026 | 1:58 pm

Indonesia Seeks Fast-Track Panda Bond Approval from China

Indonesia secured China's support for a planned Panda Bond issuance to diversify funding and expand its investor base.
Business Jun 18, 2026 | 10:59 pm

Beijing Backs Indonesia’s Yuan-Denominated Bond Issuance: Purbaya

Indonesia secured China’s support for its planned Panda Bond issuance, aimed at diversifying funding sources in yuan.
Business Jun 18, 2026 | 11:29 am

Purbaya Takes on $17 Billion in New AIIB Debt for Infrastructure Projects

Indonesia secures $17 billion in AIIB financing and welcomes plans for a Jakarta representative office.
Business Jun 17, 2026 | 3:04 pm

Purbaya Courts Chinese Investors Ahead of Panda Bond Issuance

Indonesia is turning to China’s bond market to diversify funding sources and deepen bilateral financial cooperation.
Business Jun 12, 2026 | 10:27 am

Purbaya Yet to Assess Subsidy Impact of Potential Shift to Pertalite

Purbaya says the government has not assessed the fiscal impact of a potential shift from Pertamax to subsidized Pertalite.
Business Jun 11, 2026 | 8:07 pm

Indonesia Targets Up to 6.5% Growth and 2.4% Budget Deficit in 2027

Indonesia has set a 2027 economic growth target of up to 6.5% while maintaining a budget deficit below the legal ceiling of 3% of GDP.
Business Jun 11, 2026 | 7:56 pm

Indonesia Aims for Rp 16,800-17,500 Rupiah in 2027 Budget

Indonesia targets inflation of 1.5%-3.5% and a rupiah range of Rp 16,800-17,500 per US dollar under its agreed 2027 state budget framework.
Business Jun 9, 2026 | 3:55 pm

Finance Minister Expects Rupiah to Recover to Rp 16,800–17,500 Range in 2027

Indonesia expects the rupiah to strengthen in 2027 as policymakers seek to preserve economic and financial-market stability.
Business Jun 9, 2026 | 3:03 pm

Purbaya Signals Further Budget Tightening in 2027 Amid Rising Spending Commitments

For 2027, the government has set a budget deficit target of between 1.8% and 2.4% of gross domestic product.
Business Jun 6, 2026 | 2:26 pm

Finance Minister Pushes Back Against ‘Sell Indonesia’ Narrative

Indonesia’s finance minister dismissed the “sell Indonesia” narrative, saying the country’s fiscal position and economy remain strong.

The Latest


News 6 hours ago

Ayase Ueda Scores Twice in Japan’s 4-0 Win Against Tunisia 

Japan’s four goals were the most the Samurai Blue had ever scored in a World Cup game.
News 9 hours ago

Jakarta Completes Rasuna Said Revamp, Removes 109 Derelict Pillars

Jakarta has completed the transformation of Rasuna Said, removing 109 abandoned monorail pillars and upgrading public spaces.
News 10 hours ago

Curacao Earns First-Ever World Cup Point after Goalless Draw with Ecuador

Curacao goalkeeper Eloy Room made 15 saves against a relentless Ecuador attack, allowing The Blue Wave to earn a 0-0 draw.
News 12 hours ago

Germany Beats Ivory Coast 2-1 to Advance to World Cup Knockout Phase

Four-time champion Germany has come back from disappointing group stage exits in 2018 and 2022.
News 12 hours ago

Netherlands Routs Sweden 5-1 to Lead Group F

Sweden coach Graham Potter said the defeat was less about what his team did and more about just how good Netherlands played Saturday.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED