Business · Economy · 2 hrs ago
Hashim targets raising Indonesia’s revenue ratio to 18%
Hashim Djojohadikusumo wants Indonesia to raise government revenue to 18% of GDP within two to three years.
He said the ratio is now about 12%, and compared it with Cambodia’s, which he says is six percentage points higher.
Hashim estimates that matching Cambodia’s ratio could bring in about Rp1,500 trillion in additional revenue each year.
He says the gap reflects revenue the government is not currently collecting, but this is an estimate, not money that can automatically be raised.
Hashim also points to a large informal economy, which he says makes economic activity harder to record and tax.
He argues that tax reform, stronger administration and digital systems can improve collection and widen the tax base.
The target depends on how effectively the government carries out those changes.
Hashim Djojohadikusumo is targeting an increase in Indonesia’s government revenue-to-GDP ratio to 18% within two to three years.
The ratio is currently around 12%, according to Hashim.
He said a six-percentage-point gap between Indonesia and Cambodia represents about Rp1,500 trillion in potential annual revenue.
Hashim cited tax reform, stronger public administration and a broader tax base as ways to improve revenue collection.
He also highlighted an informal or unrecorded economy estimated at 35–45% of Indonesia’s nominal economy.
- Who
- Hashim Djojohadikusumo, an adviser to the Prasasti Center for Policy Studies.
- What
- He is targeting an increase in Indonesia’s revenue-to-GDP ratio to 18%. He said the current ratio is around 12%.
- When
- He said the target should be reached within two to three years.
- Where
- Jakarta, at the Prasasti Indonesia Policy Forum 2026.
- Why
- Hashim said Indonesia’s revenue ratio is low and that tax reform and better administration could help collect more revenue.
This story does not have two clearly opposing sides.
Hashim set a target to raise Indonesia’s revenue-to-GDP ratio to 18% within two to three years.
Hashim made the remarks at the Prasasti Indonesia Policy Forum 2026 in Jakarta.
- Current revenue-to-GDP ratio
- Around 12%
- Target revenue-to-GDP ratio
- 18%
- Target period
- Two to three years
- Estimated annual revenue gap
- Rp1,500 trillion
- Estimated unrecorded economy
- 35–45% of nominal GDP
What people are saying
The six-percent gap between our revenue ratio and Cambodia’s is equivalent to USD90 billion per year. (Assuming) our nominal GDP is around USD1.4 trillion–USD1.5 trillion per year.
The fact that our revenue ratio is low is because there is no political will, in my view and in President Prabowo’s view. One of President Prabowo’s goals is to reach Cambodia’s level in two to three years; we want to reach 18 percent.
This means our economy is much larger than what is officially recorded. Its value is not USD1.5 trillion, but close to USD2.1 trillion or around Rp35 thousand trillion.
Sources
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