Indonesia Amasses $98 Billion in Tax, But Needs $28 Billion More

Detailed summary

Indonesia’s tax collection target for 2026 is set at least Rp 2.3 quadrillion (or around $126 billion). In other words, Indonesia has to chase the remaining Rp 514 trillion ($28…

Jakarta. Indonesia reported having amassed almost Rp 1.8 quadrillion, or around $98 billion, worth of taxes so far this year as of the end of October, but the government is still falling behind its full-year target.

Indonesia’s tax collection target for 2026 is set at least Rp 2.3 quadrillion (or around $126 billion). In other words, Indonesia has to chase the remaining Rp 514 trillion ($28 billion) in the final two months, according to the Finance Ministry on Friday.

Tax chief Bimo Wijayanto said that the government would make an extra effort to catch up. To this end, the government plans to optimize key sources such as trade, processing, and warehouses, among others.

“We will continue to monitor tax obligations and taxpayer compliance,” Bimo said.

“We incorporate data from both banking and non-banking institutions and other information from third parties. We use all this data to verify the data found in the [government’s tax platform] Coretax.”

The tax department will take advantage of the PPh 22 income tax on marketplace sales.

“[The marketplace tax aims] to create fairness for the sellers, buyers, the state, and [back to] the people, as parts of the nation’s development are also funded by the state,” Bimo said.

The government has also introduced a system to streamline tax collection in cross-border digital transactions, thus possibly giving a major boost to the receipts in the last two months.

Data showed that the receipts had mainly come from income tax in non-oil and gas totaling Rp 893.1 trillion or roughly $49 billion in the first 10 months of 2026, up by 16.6% year-on-year (yoy). The income tax from the oil and gas sectors amounted to almost Rp 48.9 trillion ($2.7 billion), but up by a whopping 84.7% yoy. Indonesia attributed this massive growth to the hike in crude oil prices.

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