Purbaya Unveils 5-Step Plan to Boost Growth and Tax Revenue
Jakarta. Finance Minister Purbaya Yudhi Sadewa has outlined five priority strategies under a “quick win” program to accelerate economic growth and lift state revenue, which remains under pressure. The measures include a targeted stimulus package, tighter enforcement against major tax delinquents, improved law enforcement coordination, IT system upgrades, and a crackdown on illegal cigarettes.
The government expects the initiatives to strengthen fiscal performance by the end of 2025 without raising tax rates, relying instead on higher economic activity and improved compliance.
1. $1 Billion Stimulus “8+4+5”
In the fourth quarter of 2025, the government will roll out a Rp16.23 trillion ($1 billion) stimulus program, including job training, tax breaks, food aid, and infrastructure projects. The package is expected to generate 3.5 million jobs.
“I’m optimistic the impact of this stimulus will accelerate growth in October, November, and December. Faster growth means better tax revenue,” Purbaya said during a state budget press briefing on Monday. He emphasized that higher state income would come from stronger economic activity, not higher tax rates.
2. 200 Major Tax Evaders
The ministry has identified 200 large-scale tax evaders with outstanding obligations of Rp50 trillion to Rp60 trillion. “We will pursue them soon, and they won’t be able to escape,” Purbaya said.
Indonesia is targeting Rp 3,147.7 trillion ($195 billion) in state revenue next year, of which Rp 2,357.7 trillion will come from taxes, a 13.5 percent increase from this year’s outlook.
3. Law Enforcement Synergy
To strengthen compliance, the ministry will coordinate with the Attorney General’s Office, the National Police, the Corruption Eradication Commission (KPK), and the financial intelligence unit (PPATK). Data sharing across ministries and agencies will also be expanded to streamline tax collection.
4. Fixing Coretax System
Acknowledging persistent glitches in the Coretax platform, Purbaya pledged to bring in external IT experts to resolve the issues. “The target is to fix it within a month,” he said.
Indonesia has been struggling to accelerate tax receipts this year. As of August, tax revenue stood at Rp 1,330.4 trillion, down 3.6 percent from a year earlier and representing just 54.7 percent of the 2025 target of Rp 2,387.3 trillion.
5. Tackling Illegal Cigarettes
The government will intensify raids against illegal cigarettes, including those sold online and in small shops, while targeting smuggling through import routes. “Anyone involved will face consequences, including customs or finance ministry staff if found complicit,” Purbaya warned.
Indonesia loses an estimated Rp 15 trillion each year in unpaid taxes from illicit cigarette sales, according to Industry Ministry data. Despite these losses, tobacco remains a crucial revenue stream. Indonesia’s excise tax collection reached Rp 300.2 trillion in 2024, exceeding the state budget target and marking 4.9 percent year-on-year growth, according to the Customs and Excise Directorate General. Cigarettes contribute roughly 90 percent of all excise tax revenues, far outstripping alcohol and other taxable goods.
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