Purbaya Says Tax Hikes Will Come Only When Growth Exceeds Six

Indonesia’s Finance Minister Purbaya Yudhi Sadewa told participants at the 100 Indonesian Economists Forum in Jakarta on 29 October 2025 that tax rate hikes will not be pursued until national economic growth exceeds six percent. He emphasized that the government will wait for robust recovery before adjusting taxes.

Purbaya explained that fiscal policy must be aligned with macro‑economic conditions; a strong growth rate can accommodate higher taxes without hurting consumer purchasing power. He also highlighted the importance of directing tax revenues promptly to the real sector rather than letting funds sit idle in the banking system.

The approach aims to accelerate funding for development programs and boost private‑sector confidence, supporting sustainable economic expansion. The government will monitor the fiscal measures carefully moving forward.