Finance Minister Purbaya: 2025 Tax Decline Linked to Weak Economy

Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, on 27 November 2025 responded to a reprimand from the DPR’s Commission XI over the drop in 2025 tax receipts. He said the decline does not indicate a policy failure but reflects a still‑weak economy.

Purbaya noted that the economy had not returned to normal through the third quarter, which slowed tax realization. He warned that raising rates or tightening collections while businesses face pressure would worsen the slowdown, and that fiscal policy should be counter‑cyclical (adjusted to the economic cycle).

The government will focus on optimizing the existing budget to aid recovery rather than increasing tax burdens. He emphasized that tax performance assessments must take the unfinished economic recovery into account.