Economic growth key to boosting state revenue: Deputy Finance Minister

 Deputy Finance Minister Suahasil Nazara said the government continues to encourage economic growth as the foundation for strengthening state revenue.

In the 2027 State Budget Draft (RAPBN), economic growth is targeted at 6 percent, driven mainly by household consumption (projected to grow 5.4 percent), government consumption (5.6 percent), investment (7 percent), and exports (7.5 percent).

"The challenge is how economic growth can generate state revenue," Nazara said in a written statement here on Monday.

To achieve that goal, the government continues to strengthen tax administration, including through the use of technology.

He added that the implementation of Coretax is part of efforts to improve the quality of tax administration and compliance.

According to him, improvements to tax administration through Coretax have contributed to increased tax revenue.

Based on state budget data as of June 2026, state revenue reached Rp1,459.4 trillion, growing 21.4 percent compared to the same period in 2025.

Tax revenue stood at Rp1,187.8 trillion, supported by tax receipts of Rp1,035.7 trillion, up 24.6 percent, and customs and excise revenue reaching Rp145 trillion, up 3.4 percent.

Non-tax state revenue (PNBP) realization reached Rp271 trillion, up 21.6 percent, while grant revenue stood at Rp7 billion, up 10.2 percent.

Nazara said the full implementation of Coretax in 2026 is also expected to continue improving in the following year, especially in increasing taxpayer compliance.

"Coretax will continue to be improved, especially in terms of compliance," he added.

Besides improving compliance, the government also sees the importance of expanding the tax base.

The development of the mineral sector and industrial downstreaming is seen as one area with potential to expand Indonesia's economic and tax base.

"We believe that downstreaming of mineral extraction and the mining industry is key to expanding the tax base in the future," he said.