Corporate Income Tax (PPh) Targeted to Contribute the Most to 2026 Tax Revenue

The Indonesian government targets tax revenue of Rp2,357.7 trillion (approximately US$157 billion based on current exchange rates, but the exact amount will vary depending on the exchange rate at the time of publication) for the 2026 fiscal year. This target represents a 7.7% increase compared to the 2025 target of Rp2,189.3 trillion.

More than half of this revenue will come from income tax (PPh). The 2026 Financial Note sets the PPh target at Rp1,209.4 trillion, or 51.3% of the total tax revenue target.

PPh is a tax levied on income received or earned by individuals and corporations, both from within and outside Indonesia.

Revenue from value-added tax and luxury goods sales tax (PPN & PPnBM) is projected to reach Rp995.3 trillion, an 11.7% increase compared to the 2025 outlook. These taxes are projected to contribute approximately 42% of next year's tax revenue.

The following is a detailed breakdown of the domestic tax revenue targets by type, as outlined in the 2026 Financial Note:

• Income Tax (PPh): Rp1,209.4 trillion (a 15% increase from the 2025 outlook)
• Value-Added Tax and Sales Tax on Luxury Goods (PPN & PPnBM): Rp995.3 trillion (an 11.7% increase from the 2025 outlook)
• Land and Building Tax (PBB): Rp26.1 trillion (a 13.3% decrease from the 2025 outlook)
• Other Tax Revenue: Rp126.9 trillion (a 21.8% increase from the 2025 outlook).

(Baca: Government Targets Rp2.357.7 Trillion in Tax Revenue in 2026)