December 15, 2025 | 05:47 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa stated that the government has not yet set a plan to adjust the Value Added Tax (VAT) rate for 2026, noting that any such policy decision requires a thorough assessment of the national economic growth performance.
"So far, nothing has been decided. We need to see how our economy can grow faster or not," Purbaya said at the Presidential Palace Complex in Jakarta on Monday, December 15, 2025, as quoted by Antara.
Purbaya stressed that he does not want to speculate before seeing concrete economic growth achievements. He suggested that if economic growth surpasses the 6 percent mark, the government would gain a broader fiscal space to manage the VAT policy.
Under such conditions, the VAT adjustment could be made flexibly, either by raising or lowering the rate, depending on prevailing economic needs. "If it's above 6 percent, there should be room to manage the VAT policy. It could go up, it could go down, so it's not a guessing game," he elaborated.
Last October, Purbaya had mentioned re-evaluating the possibility of lowering the VAT rate, noting the potential revenue loss of Rp70 trillion for every 1 percent reduction in the rate.
For now, Purbaya claimed that his priority is focused on improving the revenue collection system through enhanced taxes and excise duties.
The Finance Minister will monitor revenue development following the system improvements until the second quarter of 2026. He expects to re-evaluate the plan to adjust the VAT rate by the end of the first quarter.
"Perhaps, by the end of the first quarter, I will have a look. From there, I can measure the actual potential. Then, I can calculate the deficit, and what the impact on economic growth would be," he stated. While the policy plan is already documented, Purbaya emphasized the need for caution in executing such a significant fiscal measure.
Read: Apindo Talks of Business Impact of Indonesia's OECD Bid
Click here to get the latest news updates from Tempo on Google News
Purbaya Enacts New Regulation: Maximum Gold Export Duty Set at 15 Percent
5 hari lalu
Finance Minister Purbaya Yudhi Sadewa has officially issued a new regulation imposing export duties on gold.
Indonesia Sets Aside Rp23.7 Trillion for Food Barns in 2026 State Budget
5 hari lalu
The 2026 State Budget raises food security funding to Rp210.4 trillion, reaffirming the government's priority on the sector.
Indonesia Eyeing to Earn Rp23 Trillion from Coal, Gold Export Duties
5 hari lalu
The Ministry of Finance plans to implement export duties on gold and coal to cover the state budget deficit.
Indonesia's Purbaya Confirms Emergency Budget Ready for Sumatra Flood Response
10 hari lalu
Finance Minister Purbaya Yudhi Sadewa said the agency is still assessing the exact additional budget required for the emergency response.
Purbaya on Whoosh Debt Restructuring: Seeking the Optimal Scheme
11 hari lalu
Minister of Finance Purbaya has confirmed that discussions concerning the debt restructuring of Whoosh are actively ongoing with Danantara.
IDX: IHSG Sets 21 Records Under Finance Minister Purbaya
12 hari lalu
When Finance Minister Purbaya took office, the IHSG was at 7,766.8. The IHSG is now at 8,617.
Local Govt Yet to Request Funds for Sumatra Floods Relief Efforts, Says Minister Purbaya
16 hari lalu
Minister of Finance Purbaya Yudhi Sadewa stated that the handling of floods and landslides in Sumatra still relies on regional government budgets.
Rupiah Projected to Continue Weaken Next Week
16 hari lalu
The director of PT Traze Andalan Futures, Ibrahim Assuaibi, predicts that the rupiah currency is likely to weaken in the trading session next Monday.
Indonesia Warned of 6 Imminent Textile Factory Failures Amid Import Surge
17 hari lalu
Six other textile factories are now running below 50 percent capacity, with some operating on and off.
Indonesia's Tax DG Forms Task Force for Coretax Transformation
17 hari lalu
The Tax DG asserted that Coretax represents a fundamental transformation compared to the previous system due to its integrated nature.
