Addin Anugrah Siwi, Jakarta – Indonesia's tax collections reach Rp 834.4 trillion ($46.3 billion) as of the end of May, rising 22.1% from a year earlier, the Finance Ministry says.

Finance Minister Purbaya Yudhi Sadewa said the performance marked a significant turnaround from 2025, when tax revenue growth remained in negative territory.

"Last year tax growth was negative, now it is positive," Purbaya told reporters during the ministry's monthly state budget briefing and n Friday.

The minister attributed the improvement partly to the government's ongoing tax administration reforms, saying they were beginning to deliver tangible results.

Corporate income tax and related deposits climbed 23.9% to Rp 167.6 trillion, while personal income tax and employee withholding tax collections rose 26% to Rp 123.1 trillion. Revenue from final income tax and other withholding taxes increased 5.2% to Rp 138.7 trillion.

The Finance Ministry said the gains reflected stronger earnings among both businesses and households.

Consumption-related taxes also posted robust growth. Value-added tax (VAT) and luxury goods sales tax revenue surged 41.3% to Rp 315.7 trillion through May, suggesting domestic spending and consumer purchasing power remained solid.

Only the category of "other taxes" recorded a decline, contracting 6% to Rp 89.3 trillion.

Sectorally, trade generated the strongest increase in tax receipts, rising 52.4%, supported by fuel trading activities and the continued expansion of e-commerce. Manufacturing tax revenue grew 19.7%, driven largely by improved profitability in the palm oil industry, while mining-related collections rose 28.2% thanks to stronger oil and gas performance.

The stronger tax intake has also helped improve the government's fiscal position. Purbaya said the state budget deficit stood at only around 0.7% after the first five months of the year. On an annualized basis, that would translate to roughly 1.7-1.8 percent of gross domestic product, comfortably below the government's deficit ceiling.

"Our budget is in a very safe position," he said.

Source: https://jakartaglobe.id/business/indonesias-tax-receipts-rise-22-in-first-five-months-of-202