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Government still chasing Rp 442.5 trillion to meet 2025 tax target

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Jakarta Globe - December 19, 2025

Arnoldus Kristianus, Jakarta – Indonesia's tax revenue reached Rp 1.63 quadrillion as of Nov. 30, equivalent to 78.7% of the full-year outlook of Rp 2.07 quadrillion, leaving a remaining Rp 442.5 trillion to be collected to meet this year's target.

Tax revenue through November contracted 3.31% year-on-year. However, Deputy Finance Minister Suahasil Nazara said monthly net tax collection showed signs of recovery, growing 2.5% in November after expanding just 0.7% in October.

"Tax collection performance has improved compared with the outcome at the end of October," Suahasil said during the December 2025 APBN KiTa press conference at the Finance Ministry on Thursday.

By category, corporate income tax amounted to Rp 263.58 trillion as of November, down 9% from a year earlier. Personal income and payroll tax totaled Rp 218.31 trillion, contracting 7.8% year-on-year. Meanwhile, final income tax and withholding taxes reached Rp 305.43 trillion, up 1.4%.

Value-added tax and luxury goods sales tax stood at Rp 660.77 trillion, down 6.6% year-on-year, partly due to refunds. Other taxes totaled Rp 186.33 trillion, growing 21.5%.

Earlier, Finance Minister Purbaya Yudhi Sadewa acknowledged that this year's tax revenue is likely to fall short of target, with less than a month remaining to pursue the Rp 2.07 quadrillion goal.

"There will be a shortfall, but there are still efforts in the final two months. The shortfall is widening, but not excessively," Purbaya said at the State Palace on Monday.

Despite the expected miss, Purbaya said tax revenue performance should return to a positive trend in 2026, pledging hands-on reforms to improve collection. "The numbers are still moving. What's clear is that next year will be different. I will be very hands-on in overseeing tax policy," he said.

The Finance Ministry also reported that 27 tax offices had achieved 100% of their collection targets as of November, a sharp increase from just two offices at the same point last year. "There are 27 offices that have already reached 100% of their targets, out of a total of 352," Tax Director General Bimo Wijayanto said.

Overall state revenue reached Rp 2.35 quadrillion, or 82.1% of the budget ceiling, comprising Rp 1.90 quadrillion in tax revenue and Rp 444.9 trillion in non-tax revenue. Tax revenue included Rp 1.63 quadrillion from taxes and Rp 269.4 trillion from customs and excise.

"State revenue realization stands at Rp 2.35 quadrillion, with tax revenue remaining the main contributor," Bimo said.

Meanwhile, state spending totaled Rp 2.91 quadrillion as of Nov. 30, consisting of Rp 2.11 quadrillion in central government spending and Rp 795.6 trillion in transfers to regions. Central government spending included Rp 1.11 quadrillion for ministries and agencies and Rp 1 quadrillion for non-ministerial outlays.

"This realization reflects that government spending continues to be directed at maintaining economic growth momentum and supporting priority programs," Purbaya said.

Source: https://jakartaglobe.id/business/government-still-chasing-rp-4425-trillion-to-meet-2025-tax-targe

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