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.

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.

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