Addin Anugrah Siwi, Bogor, West Java – The Indonesian government is stepping up efforts to meet its 2025 tax revenue target of Rp 2,076.9 trillion ($125 billion) during the final three months of the year, as the fourth quarter traditionally accounts for the bulk of annual tax payments.

Yon Arsal, special advisor to the Finance Minister for Tax Compliance, said the last quarter of 2025 will be a decisive period for revenue collection.

"Most tax payments typically come in during these final three months," Yon said in a recent interview. "This is when realization usually peaks."

Yon added that the Finance Ministry is closely monitoring economic trends to identify which sectors are experiencing growth or decline. Strong-performing sectors will be prioritized to increase their tax contributions, while weaker ones will receive policy adjustments to maintain compliance without stifling recovery.

The government faces a tough fiscal outlook this year. Finance Minister Purbaya Yudhi Sadewa reported that as of August 2025, Indonesia's budget deficit had reached Rp 321.6 trillion ($19.4 billion), equivalent to 1.35 percent of GDP.

Total state revenue stood at Rp 1,638.7 trillion ($99 billion) by August – just 57.2 percent of the 2025 budget target – and was down 7.8 percent year to date.

Tax revenue accounted for Rp 1,135.4 trillion ($68.6 billion), or 54.7 percent of target, reflecting a 5.1 percent year-to-date contraction. Meanwhile, customs and excise receipts reached Rp 194.9 trillion (62.8 percent of target), and non-tax state revenue totaled Rp 306.8 trillion (64.3 percent of target).

Despite the shortfall, officials remain optimistic that year-end payments – especially from corporate and value-added tax sources – will help close the gap and bring the 2025 revenue target within reach.

Source: https://jakartaglobe.id/business/indonesia-races-to-meet-125-billion-tax-target-in-final-quarte