Minister Purbaya Pushes Economic Growth to Raise Tax Ratio

Finance Minister Purbaya Yudhi Sadewa told the 100 Indonesian Economists Forum in Jakarta on Tuesday, 28 October 2025, that accelerating economic growth is the key to raising tax revenue and the tax ratio. He said faster, inclusive growth will automatically broaden the tax base.

Purbaya noted that an active private sector is essential, recalling that the tax ratio improved during President SBY’s term when the private sector drove growth, unlike the Jokowi era that relied on state‑owned enterprises. The government has deployed a stimulus package through Bank Himbara to ease credit, aiming to spur investment, job creation, and production.

He estimates that with optimal performance of both private and public sectors, the tax ratio could increase by 0.5‑1 %. He also signaled readiness to add up to Rp200 trillion in additional stimulus if needed, which may affect taxpayers and business activity.