The government set a tax revenue target in the 2026 Draft State Budget (APBN) of IDR 2,357.7 trillion. This means a 13.5% increase from the 2025 tax revenue outlook of IDR 2,076.9 trillion.
The tax revenue target set by the government is considered too ambitious. Hard work and maximum effort are needed so that the target can be achieved. On the other hand, the government must ensure that the 2026 tax revenue target that has increased does not disrupt the business climate.
Executive Director of Tax Research Institute (TRI) Prianto Budi Saptono said, the government must make careful planning or strategy so that tax revenue can be achieved according to the target.
The first strategy is to optimize tax extensification and intensification. From year to year, tax extensification and intensification conducted by the Directorate General of Taxes (DGT) has not been 100%.
Tax extensification is a monitoring activity carried out by the Directorate General of Taxes on taxpayers who have met the objective requirements but do not yet have an NPWP. Meanwhile, intensification is an activity to optimize the extraction of tax revenue from tax objects and subjects that have been registered. Prianto said, if the tax extensification and intensification efforts have been carried out optimally, then half of the tax revenue can be obtained.
The second strategy is to keep an eye on VAT and income tax revenues. Of the two types of taxes, income tax is the most difficult to pursue because there are still many who avoid it for many reasons. The Directorate General of Taxes needs to impose fines on taxpayers who never want to pay income tax.
The third strategy is to fix the Core Tax Administration System (Coretax). Since its launch on January 1, 2025, this system has not functioned well. Coretax continues to experience technical problems. The problem is that the tax financing business process can only be done through Coretax.
"Tax payments in January 2025 fell 41% because Coretax was problematic. Don't let this condition happen again in the future," he told SUAR in Jakarta (19/8).
"Tax payments in January 2025 fell by 41% due to Coretax problems. Don't let this condition happen again in the future," said Prianto.
Prianto said that the Directorate General of Taxes needs to conduct socialization and special approaches to business actors to be obedient in paying taxes, so that the increase in this target can be accepted by them and does not disrupt their business climate.
The approach can be to provide professional tax consultants, so they can ask questions.
Chairperson of the Indonesian Employers Association (Apindo) Shinta Kamdani said that the government can carry out tax extensification. One of them is targeting the shadow economy or underground economy.
The shadow economy is an economic activity that contributes to the calculation of gross national product and gross domestic product (GDP), but the calculation has not been recorded.
"Extensification through the shadow economy can be a surefire way to boost taxes," he told SUAR in Jakarta (19/8/2025).
"Extensification through the shadow economy can be a surefire way to boost taxes," said Shinta.
Shinta said, there is still a lot of shadow economy potential out there that can be optimized.
Target considerations
But here's the government's excuse. Finance Minister Sri Mulyani stated that the tax revenue target of IDR 2,357.7 trillion in the 2026 Draft State Budget has taken into account projections of improved national economic performance, tax sustainability, challenges and potential.
The value of IDR 2,357.7 trillion includes the income tax (PPh) revenue target of IDR 1,209.4 trillion, up 15% compared to last year. Then, value added tax (VAT) and sales tax on luxury goods (PPnBM) of IDR 995.3 trillion, up 11.7% compared to last year. The land and building tax (PBB) revenue target for 2026 is IDR 26.1 trillion, down 13.1%. Other taxes are targeted at IDR 126.9 trillion.
Then, the government is also targeting customs and excise revenues to reach IDR 334.3 trillion next year.
To achieve the customs and excise revenue target, the government is preparing a number of measures. First, to encourage policies related to tobacco products and the extension of excisable goods.
Secondly, the government will also intensify duties on international trade. For example, making an export duty policy to support downstream products.
Finally, the government will also enforce the law, and combat the circulation of illegal excisable goods and smuggling.
