Business · Economy · 3 hrs ago
Indonesia sets 9% tax-to-GDP target for 2027
Indonesia aims to raise tax revenue to 9% of GDP in 2027, according to tax chief Bimo Wijayanto.
The target is part of the government’s effort to increase state revenue, while Indonesia’s tax-to-GDP ratio has remained largely unchanged in recent years.
Gross tax receipts are growing by about 13% to 14%, faster than the roughly 8% combined growth expected from the economy and inflation.
Bimo said better tax administration, including the Coretax system, stronger analysis and enforcement, has helped lift receipts.
He also said the government must weigh tax changes against the need to fund development and keep the budget deficit below 3% of GDP.
The 2027 target is one effort to raise revenue, but Bimo did not say whether it would be met or describe further steps.
Indonesia is targeting tax revenue equal to 9% of gross domestic product in its 2027 state budget, Director General of Taxes Bimo Wijayanto said.
Bimo said gross tax revenue is currently growing by about 13% to 14%, faster than estimated economic growth and inflation combined.
He attributed the growth to improved tax administration, including the Coretax system, field analysis, audits and enforcement.
Bimo said decisions to raise revenue must also account for development funding and keeping the state budget deficit below 3%.
Hashim Djojohadikusumo said Indonesia’s total state revenue has remained around 12% of GDP for 13 years and trails Cambodia and Vietnam.
- Who
- Indonesia’s government, represented by Director General of Taxes Bimo Wijayanto, set the target. Hashim Djojohadikusumo also commented on revenue levels.
- What
- The government is targeting tax revenue of 9% of GDP in the 2027 state budget.
- When
- The target is for the 2027 state budget. Bimo discussed it on October 15, 2026.
- Where
- Bimo spoke at the Directorate General of Taxes office in Jakarta.
- Why
- The target is an effort to increase state revenue.
This story does not have two clearly opposing sides.
Hashim Djojohadikusumo said at the Prasasti Indonesia Policy Forum that state revenue had stayed near 12% of GDP for 13 years.
Bimo Wijayanto discussed the tax target and revenue growth with reporters at the tax office in Jakarta.
The government is targeting tax revenue equal to 9% of GDP in the state budget.
- Tax target
- 9% of GDP in the 2027 state budget
- Gross tax revenue growth
- About 13% to 14%
- Economic growth assumption
- 5.5%
- Inflation assumption
- 2.5%
- State budget deficit limit
- Below 3%
- Hashim’s estimate of annual revenue shortfall
- About 6% of GDP, or Rp1,500 trillion
2 sources
What people are saying
This is the first time in our history that we have dared to set a target of 9 percent of GDP in the 2027 state budget.
If the economy grows by 5.5 percent and inflation is 2.5 percent, that is 8 percent; we are growing about 6 percent above that natural economic and inflation growth.
Our revenue ratio to GDP is very low. Thirteen years ago it was 12 percent of GDP, and today it is still 12 percent of GDP.
We are collecting 6 percent per year less revenue than we should be able to collect. That is equivalent to Rp1,500 trillion per year that we should be able to collect now.