The Finance Minister clearly stated during an online working meeting with the Regional Representative Council that although the national tax revenue target for 2026 is as high as 2,357.7 trillion rupiah (approximately US$160 billion), a 13.5% year-on-year increase, the government will not introduce any new taxes. She emphasized that revenue will be increased by strengthening enforcement of the existing tax system and improving taxpayer compliance, rather than imposing new tax burdens.
The government is well aware of the huge development needs but limited fiscal resources, so it must prioritize key areas. She pledged that tax policies will embody the spirit of social solidarity, for example continuing to exempt personal income tax for annual income below 60 million rupiah, implementing preferential rates for MSMEs (only 0.5% on turnover above 500 million rupiah annually), and maintaining VAT (PPN) exemptions for healthcare, education, and other livelihood sectors.
Furthermore, the government will not levy taxes on micro-enterprise operations to support economically vulnerable groups. This statement responded to social rumors about possible tax increases in 2026. She reiterated that the core of tax reform is to optimize the existing system, ensure fairness and efficiency, while giving priority to supporting the national development projects proposed by President Prabowo.
The Finance Minister clearly stated during an online working meeting with the Regional Representative Council that although the national tax revenue target for 2026 is as high as 2,357.7 trillion rupiah (approximately US$160 billion), a 13.5% year-on-year increase, the government will not introduce any new taxes. She emphasized that revenue will be increased by strengthening enforcement of the existing tax system and improving taxpayer compliance, rather than imposing new tax burdens.
The government is well aware of the huge development needs but limited fiscal resources, so it must prioritize key areas. She pledged that tax policies will embody the spirit of social solidarity, for example continuing to exempt personal income tax for annual income below 60 million rupiah, implementing preferential rates for MSMEs (only 0.5% on turnover above 500 million rupiah annually), and maintaining VAT (PPN) exemptions for healthcare, education, and other livelihood sectors.
Furthermore, the government will not levy taxes on micro-enterprise operations to support economically vulnerable groups. This statement responded to social rumors about possible tax increases in 2026. She reiterated that the core of tax reform is to optimize the existing system, ensure fairness and efficiency, while giving priority to supporting the national development projects proposed by President Prabowo.