Not Decided, PPN 2026 Adjustment Waiting for RI Economic Growth to be Concrete

Minister of Finance Purbaya Yudhi Sadewa. (Photo: ANTARA)

JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa said that the government has not yet set a plan to adjust the Value Added Tax (PPN) for 2026.

According to him, the policy still requires study, one of which is by looking at the performance of national economic growth.

"It hasn't happened yet. We'll see how our economy can grow faster or not," said Purbaya, quoted by ANTARA, Tuesday, December 16.

Purbaya emphasized that he did not want to speculate before seeing the concrete achievement of economic growth.

If economic growth is able to penetrate above 6 percent, said Purbaya, then the government has a wider fiscal space to manage the VAT policy.

With this condition, adjustment options can be made flexibly. According to Purbaya, in this case the VAT can be increased or possibly decreased, according to economic needs.

"If it is above 6 percent, there should be room to process the VAT policy. It can go up, it can go down, so it's not a guess. If you don't lower it, raise it," he said.

In October, Purbaya said he would review the opportunity to reduce the value-added tax (PPN) rate because it had the potential to lose revenue of Rp70 trillion for every 1 percent tariff reduction.

For now, Purbaya admitted that he was more focused on improving the revenue collection system, both through taxes and customs.

The State Treasurer will monitor the development of receipts, after system improvements until the second quarter of 2026. At least at the end of the first quarter, Purbaya will re-evaluate the plan to adjust the VAT rate. "Maybe at the end of the first quarter I've seen. From there, I can actually measure my potential for what is real. Later, if I count, how much is missing, how much is the impact on economic growth," he said. Purbaya stated that the plan was written in black and white on paper. However, he underlined, he as the Minister of Finance needs to be careful in executing the policy.

English:

The State Treasurer will monitor the development of receipts, after system improvements until the second quarter of 2026. At least at the end of the first quarter, Purbaya will re-evaluate the plan to adjust the VAT tariff.

"Maybe at the end of the first quarter I've seen it. From there, I can actually measure how much my potential is real. Later, if I count, how much is missing, how much is the impact on economic growth," he said.

Purbaya stated that the plan was written in black and white on paper.

However, he underlined that he as the Minister of Finance needed to be careful in executing the policy.