Purbaya Says Sluggish Economy Limits Tax Revenue 2025

Finance Minister Purbaya Yudhi Sadewa told a working meeting with Commission XI of the House of Representatives on 27 November 2025 that tax receipts are falling because the national economy is sluggish. He added that the situation limits the Directorate General of Taxes’ ability to collect revenue.

The economy grew about 5 % in 2025, with manufacturing output lagging, which constrained formal‑sector job creation and narrowed the tax base. Purbaya warned that raising rates or other intensification measures would likely worsen receipts, and called for a large stimulus to boost money supply and manufacturing growth.

Tax revenue recorded up to October 2025 reached 1.459 trillion rupiah, 3.8 % lower than the previous year and only 66.6 % of the 2025 state budget (APBN) target of 2.189 trillion rupiah. The minister stressed that optimizing the APBN to support economic growth and formal‑sector employment is essential for expanding the tax base.