Executive Summary

Key insights and market outlook

By November 2025, Indonesia's central government spending reached Rp 2,116.2 trillion (79.5% of target), while tax revenue collection stood at Rp 1,634.4 trillion (78.7% of target) ¹

⁵. The budget deficit was recorded at Rp 560.3 trillion (2.35% of GDP). Despite challenges in tax collection, 27 tax offices achieved 100% of their targets ⁴.

Full Analysis

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Deep Dive Analysis

Indonesia's Financial Performance Update: Government Spending and Tax Revenue

Government Expenditure Trends

The Indonesian government's central expenditure reached Rp 2,116.2 trillion by the end of November 2025, representing 79.5% of the target outlined in the Semester Report (Lapsem) 2025 ¹

. This spending comprised Rp 1,110.7 trillion (87.1% of target) for Ministry/Institution (K/L) expenditures and Rp 1,005.5 trillion (72.5% of target) for non-K/L expenditures. Finance Minister Purbaya Yudhi Sadewa noted that K/L spending showed accelerating activity towards year-end, indicating improved budget execution readiness ¹⁶.

Tax Revenue Collection

Tax revenue collection presented a mixed picture. By November 2025, total tax receipts reached Rp 1,634.4 trillion, accounting for 78.7% of the annual target of Rp 2,076.9 trillion ⁵

. While this represented an improvement from previous months, with a 2.5% month-on-month growth in November, certain tax components showed declines. Corporate income tax collection was down 9.0% to Rp 263.58 trillion, while personal income tax was 7.8% lower at Rp 216.31 trillion ⁵.

Deficit and Debt Management

The budget deficit stood at Rp 560.3 trillion, equivalent to 2.35% of GDP, by 30 November 2025 ⁶

. The government had drawn Rp 614.9 trillion in new debt, covering 84.06% of the planned Rp 731.5 trillion for deficit financing ³. Finance officials emphasized that the current deficit level was within manageable limits and aligned with the APBN design.

Tax Compliance Efforts

The Directorate General of Taxes (DJP) reported significant progress in tax compliance efforts. By 15 December 2025, Rp 13.44 trillion had been collected from 120 major tax delinquents, out of a total outstanding amount of Rp 60 trillion ²

. Additionally, 27 tax offices achieved 100% of their revenue targets for 2025, marking a significant improvement from the previous year's performance ⁴.

References