TEMPO.CO, Jakarta - The House of Representatives (DPR) and the government have agreed to raise the lower threshold of the target state revenue for next year to 12.01 percent of the Gross Domestic Product (GDP). The adjustment was announced during a meeting focused on the Macroeconomic Framework and Fiscal Policy Outlines (KEM-PPKF) for the 2027 Fiscal Year.
In previous deliberations, the lower limit for state revenue had been set at 11.82 percent, with an upper limit fixed at 12.4 percent of GDP. "The working committee has agreed to adjust the lower limit to 12.01 percent, an increase of approximately 0.19 percent," said Fauzi Amro, Chairperson of the Revenue Working Committee and Deputy Chairperson of the DPR's Commission XI, in Senayan, Jakarta, on Thursday, June 11, 2026.
The lower limit of the state revenue is the minimum percentage of income the state aims to collect relative to the total value of the GDP. These targets, established within the KEM-PPKF, serve as the definitive benchmark for drafting the 2027 State Budget (APBN).
Fauzi expressed optimism that the revised target would bolster next year's revenue. "This is in line with our expectations while remaining mindful of the public's well-being and the economic realities of 2027," he remarked.
Finance Minister Purbaya Yudhi Sadewa, attending the meeting, explained that hitting these targets would hinge on broadening the tax base and improving compliance. "Or on the effectiveness of the Coretax system," he noted.
Furthermore, the government plans to pursue the implementation of global tax standards and a digital economy framework. Other strategic measures include optimizing natural resource management, enhancing service quality, and strengthening law enforcement, alongside providing fiscal incentives to accelerate investment.
Following the meeting, Purbaya maintained that the hike in the revenue floor remains reasonable. "It is expected that there will be an increase in tax and customs collection efficiency. And that limit is still reasonable, as it is not far from the current level," he said.
Consequently, the ratio of state revenue to GDP for next year is now targeted within a range of 12.01 to 12.40 percent. Meanwhile, the 2027 budget deficit is projected at 1.80 to 2.40 percent of GD, which is a tighter margin compared to this year’s 2.68 percent range.
Read: How Purbaya Views the Consumer Shift to Pertalite
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