Indonesia to Focus on Tax Reform in 2026 Without New Levies

No New Taxes or Rate Increases Planned

The Indonesian government has confirmed that there will be no introduction of new taxes or increases in existing tax rates during 2026. This decision comes as a relief to taxpayers as the government shifts its focus towards enhancing the existing tax framework. Finance Minister Sri Mulyani emphasized that the tax policy direction for 2026 will concentrate on system reform, improving compliance, and aligning with global standards, all within the boundaries of current laws and regulations.

Conditional Tax Adjustments

Sri Mulyani mentioned that tax adjustments would be considered when the economy is growing at a rate above 6%. She suggested that during such periods of robust economic growth, taxpayers would be more capable of meeting their tax obligations, implying a more favorable environment for tax revenue collection.

Key Focus Areas for 2026

1. Tax System Reform: Modernizing the tax administration infrastructure to improve efficiency and effectiveness.
2. Enhancing Tax Compliance: Implementing measures to increase voluntary compliance among taxpayers.
3. Global Standard Alignment: Adjusting tax policies and practices to conform to international standards and best practices.

Implications for Taxpayers

While the absence of new taxes in 2026 provides immediate relief, taxpayers need to prepare for potential changes in tax administration and compliance requirements. The government's focus on reform and modernization suggests that taxpayers may face enhanced scrutiny and new compliance obligations in the near future.