Politics · Indonesia · 3 hrs ago
Indonesia Aims to Raise Revenue-to-GDP Ratio to 18% in Two to Three Years
Hashim Djojohadikusumo said Indonesia’s state revenue remains low compared with its neighbours at a policy forum in Jakarta.
The country’s revenue-to-GDP ratio, which compares government revenue with the size of the economy, has stayed at about 12% for years.
Cambodia’s ratio is 18%, while Vietnam’s is 23%, according to Hashim.
He said the difference reflects stronger political commitment from leaders in those countries.
President Prabowo’s government wants Indonesia to reach 18% within two to three years, matching Cambodia’s current level.
Hashim said bureaucratic resistance could make reforms difficult.
An electronic tax system has recently begun using machines to collect taxes, state revenue and royalties.
Indonesia aims to raise its state revenue-to-GDP ratio to 18% within two to three years, according to presidential envoy Hashim Djojohadikusumo.
Hashim said President Prabowo Subianto set the target after discussions between them.
He said Indonesia’s revenue ratio has remained around 12% for years, below Cambodia’s 18% and Vietnam’s 23%.
Hashim attributed the higher ratios in Cambodia and Vietnam to their leaders’ political will.
He said an electronic tax system, using machines to collect taxes, state revenue and royalties, had begun recently.
- Who
- Presidential envoy Hashim Djojohadikusumo announced the target, which he said was set by President Prabowo Subianto.
- What
- Indonesia aims to raise its state revenue-to-GDP ratio to 18%.
- When
- The target is for two to three years from the announcement on October 13, 2026.
- Where
- Hashim spoke at a Prasasti Center for Policy Studies forum in Jakarta.
- Why
- Hashim said Cambodia and Vietnam have higher ratios because of their leaders’ political will.
This story does not have two clearly opposing sides.
Hashim said an electronic taxation program had begun, with machines to collect taxes, state revenue and royalties.
Hashim announced at a forum in Jakarta that Indonesia aims to reach an 18% revenue-to-GDP ratio within two to three years.
- Indonesia’s target
- 18% of GDP
- Target timeframe
- Two to three years
- Cambodia’s revenue ratio
- 18% of GDP
- Vietnam’s revenue ratio
- 23% of GDP
- Indonesia’s current ratio
- About 12% of GDP, according to Hashim
What people are saying
The goal of President Prabowo is to reach Cambodia’s level within the next two to three years. We want to reach 18 percent.
Today, Cambodia’s state revenue ratio is 18 percent. Meanwhile, its neighbor Vietnam has a state revenue ratio of 23 percent.
We must set aside the bureaucracy that is very resistant to change.
I think the program began about one to two weeks ago: electronic taxation, which will now be run by machines.
Sources
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