2025 Tax Revenue Shortfall of IDR 271.7 Trillion

JAKARTA - The Ministry of Finance recorded tax revenue as of December 31, 2025 reaching IDR 1,917.6 trillion or equivalent to 87.6 percent of the 2025 State Budget target of IDR 2,189.3 trillion.

The achievement shows that tax deposits are still below target, with a shortfall of around IDR 271.7 trillion.

Deputy Minister of Finance Suahasil Nazara said that the realization of tax revenue in 2025 was also lower than the previous year which reached Rp. 1,931.6 trillion.

"The net tax revenue figure is -0.7 percent. So 2025 is below 2024," he said in the APBN Kita press conference, Thursday, January 8.

According to him, the weakening of tax revenue is influenced by a number of factors, including the normalization of commodity prices, increased tax refunds due to relaxation policies and accelerated inspections, as well as various fiscal policies aimed at maintaining people's purchasing power and business continuity.

Suahasil explained that the pressure on tax revenue was felt most in the first half of 2025, which had an impact on the decline in deposits in almost all types of taxes. However, the performance of receipts began to show improvement in the second half of the year.

For Income Tax (PPh) for the Agency, for example, in the first half of 2025 it was recorded to have contracted by 10.4 percent on an annual basis, but this condition reversed in the second semester with a growth of 2.3 percent and realization of Rp321.4 trillion.

Meanwhile, Personal Income Tax and Article 21 Income Tax also experienced considerable pressure in the first half of 2025, which fell 19.4 percent, but in the second semester both grew 17.5 percent with a total realization of Rp248.2 trillion.

The next pattern is also seen in the final PPh, PPh Article 22, and PPh Article 26 where after contracting by about 4 percent in the first semester, the three types of taxes recorded growth of up to 8 percent in the second semester with a total deposit of Rp345.7 trillion.

Furthermore, the Value Added Tax (VAT) and Luxury Goods Sales Tax (PPnBM) experienced a 14.7 percent year-on-year decline in the first half, before turning around to grow 2.1 percent in the second half with a realization of Rp790.2 trillion.

"Everything is like that, in the first semester the pressure is quite high, but there is improvement in the second semester," said Suahasil.