Purbaya admits 2025 tax target missed due to weak economy

Finance Minister Purbaya Yudhi Sadewa has admitted that the 2025 tax revenue target of Rp2.189 trillion was not met due to the national economy's slowdown in the first nine months. He also expressed surprise at complaints from taxpayers about difficulties in self-activating Coretax accounts. The statements were made at the Ministry of Finance in Jakarta on December 31, 2025.

Finance Minister Purbaya Yudhi Sadewa has acknowledged that the tax revenue target in the 2025 state budget of Rp2.189 trillion was not achieved. As of November 2025, tax collections reached only Rp1.634,43 trillion, or 74.65 percent of the target, a 3.21 percent decline from the same period the previous year. The main reason is the slowdown in the national economy during the first nine months of 2025.

"As you have seen earlier, taxes are below the target in the state budget," Purbaya said at the Ministry of Finance in Jakarta on Wednesday, December 31, 2025.

Due to these conditions, Purbaya postponed several new tax collection efforts. "Because the economy was bad in the first nine months of this year, I postponed some tax collection efforts until the economy improves. It's pointless if I do it now; the money won't come in and it would worsen the economy," he stated.

He emphasized that his policies are counter-cyclical to avoid further burdening the economy and is optimistic about recovery becoming evident by the end of the first quarter of 2026. "So I'm confident that by the end of Q1-2026, it will be clearer that our economy is moving in a faster direction," he added.

In addition to tax issues, Purbaya addressed complaints about self-activating Coretax accounts. He expressed surprise at the numerous reports he received in the last two days. "Some people complained to me in the last two days. It seems complicated the way to input it. But if it's at the tax office with tax officials, it's definitely done," he said.

Purbaya urged the Directorate General of Taxes (DJP) to provide clearer instructions and training for taxpayers. Coretax management has been under the Ministry of Finance since mid-December 2025. Activations at tax service offices generally proceed smoothly without issues.

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The differential contribution on high incomes, created in 2025, brought in only 400 million euros, nearly five times less than expected, according to the Ministry of Economy and Finance. This tax, aimed at ensuring a minimum 20% taxation for the wealthiest, was largely circumvented by targeted taxpayers. It highlights the challenges in effectively taxing very high incomes in France.

Delhi's chief secretary has expressed concern over the slow pace of fund utilization under the 2025-26 revised estimates. He has directed major departments like health, public works, and transport to accelerate spending and ensure 100% utilization. An adverse view will be taken if targets are not met.

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내각이 사상 최대 122조3000억 엔 규모의 2026 회계연도 예산을 승인한 가운데 다카이치 사나에 총리가 28년 만의 기본 균형 흑자 전망을 발표하며 높은 부채 우려 속 장기 재정 건전성 향상 진전을 강조했다.

 

 

 

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