The 2026 Tax Target Increase Is Part Of Acceptance Reform

JAKARTA - Director General of Economic and Fiscal Strategy of the Ministry of Finance (Kemenkeu) Febrio Kacaribu explained that the increase in tax revenue ratios was in the range of 10.08 percent to 10.54 percent of Gross Domestic Product (GDP) in the Draft State Revenue and Expenditure Budget (RAPBN).

Febrio explained that the increase in the tax revenue ratio was part of the government's tax reform efforts.

"The rise, of course, is because we continue to direct us to improve acceptance. That's part of the reform," he told the media crew, Thursday, July 24.

Febrio emphasized that the sectors that were the main sources of increasing revenue came from the contribution of all sectors.

However, he explained historically that sectors with a large contribution to GDP came from the manufacturing sector, which is still the main contributor to tax revenue.

"From its history, usually the sectors that contribute are of course the sectors whose GDP is also large. Now, usually some sectors such as manufacturing, the contribution is still large. So we'll see later," he said.

Previously, the Government targeted the tax revenue ratio (tax ratio) in 2026 to be in the range of 10.08 percent to 10.54 percent of Gross Domestic Product (GDP). This target shows an increase in the upper limit when compared to the target in the 2025 APBN which is 10.24 percent of GDP.

The Ministry of Finance (Kemenkeu) plans to extensify and intensify tax revenues by 2026, one of which is by exploring the potential for taxation from activities on social media and new excise objects on processed foods.

Deputy Minister of Finance Anggito Abhimanyu revealed the plan in a working meeting with Commission XI of the DPR, on Monday, July 14.

During the meeting, Anggito explained the 2026 work plan and budget, namely the potential for tax excavation from social media itself, including in the formulation of administrative policies in 2026.

"Regarding the output of policy formulation on the administrative side, firstly exploring potential through analytic data and social media," he said.

In addition, Anggito said that the Ministry of Finance also plans to impose excise on processed food products containing sodium (P2OB), strengthen tax regulations and non-tax state revenues (PNBP), as well as reform the export-import and logistics business processes, including the expansion of excisable goods.

"Recommend to goods for excisable goods expansion, then strengthen regulations to increase state revenues as well as improve the business process for export and import activities," he said.

To note, the expansion of excise objects in processed foods, including ready-to-eat food, has actually been discussed since 2024, where this plan is strengthened by Government Regulation (PP) Number 28 of 2024 as an implementation of Law Number 17 of 2023 concerning Health, which regulates the control of sugar, salt, and fat consumption (GGL).

For information, tax revenues in the first semester of 2025 recorded a contraction of 6.21 percent, with a realization of IDR 837.8 trillion. This contraction is influenced by the high restitution and the application of an effective rate of value added tax (VAT) of 11 percent.