Finance Minister confirms no new taxes for Indonesia in 2026

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The Finance Minister made it clear at a recent online working session with the Council of Local Representatives that the government will not introduce any new taxes, despite a high national tax revenue target of 2,357.7 trillion dong ($160 billion) in 2026, a year-on-year increase of 13.51 TP3T. She emphasized that it would passStrengthening enforcement of the existing tax system and increasing taxpayer compliance to raise revenue, rather than adding new taxesturn one's back onThe

The Government was well aware that the country's development needs were enormous but its financial resources were limited, and it must therefore prioritize the protection of key areas. She pledged that tax policies would reflect the spirit of social solidarity, for example.Continuing to exempt individuals with an annual income of less than 60 million dong from income tax, applying a preferential tax rate for micro, small and medium-sized enterprises (only 0.5% on the portion of their annual turnover exceeding 500 million dong), and maintaining the value-added tax on people's livelihoods in the areas of healthcare and education (PPN) ExemptionsThe

In addition, the government will not impose taxes on microenterprise operations to support economically vulnerable groups. This statement responded to previous social rumors about a possible tax increase in 2026. She reiterated that the core of the tax reform is to optimize the existing system to ensure equity and efficiency, while prioritizing support for the national development projects proposed by President Prabowo.

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