The government has proposed a 2027 tax ratio target in the range of 10.02% to 10.5% of gross domestic product (GDP). The proposal was delivered by Finance Minister Purbaya Yudhi Sadewa during a session with the parliamentary Budget Committee on Tuesday, 9 June 2026, and is set out in the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) 2027.
The KEM-PPKF is the document that forms the basis for drafting the following year's State Budget Bill (RAPBN). It contains macroeconomic assumptions and the direction of fiscal policy, including the tax ratio target. Because it is still an early framework, the figure is presented as a range rather than a fixed nominal amount.
2027 Fiscal Targets in Detail
A tax ratio in the 10.02% to 10.5% of GDP range is required to support a state revenue target set at 11.82% to 12.4% of GDP. The tax ratio measures tax revenue relative to the size of the economy (GDP), making it the principal indicator of how effectively the state collects tax from economic activity.
On the spending side, the government targets state expenditure of 13.62% to 14.8% of GDP. With that combination of revenue and spending, the budget deficit is projected at 1.8% to 2.4% of GDP. This deficit ceiling remains below the 3% of GDP threshold set out in state finance rules (Article 12 paragraph (3) of Law Number 17 of 2003 on State Finance).
According to Purbaya, funding for the eight national priority work programs (PKPN) in 2027 is estimated at between Rp1,720 trillion and Rp1,896 trillion. This funding will be allocated through central government spending, optimization of transfers to regions, and budget financing.
Eight National Priority Programs
The eight PKPN that will shape 2027 spending cover food sovereignty, energy and water self-sufficiency, education, health, downstreaming and industry, infrastructure, housing, and disaster resilience, the people's economy and village development, and poverty reduction.
To reach the revenue target, the government says it will pursue three main policy directions: raising tax compliance, broadening the tax base, and aligning Indonesia's tax system with global tax practice and the digital economy.
Context From the Current Year
This 2027 tax ratio target continues the trend set in prior years. In the 2026 State Budget Bill, the government targeted a tax ratio of 10.47%, higher than the 2025 target of 10.03%. Tax revenue for 2026 was proposed at Rp2,692 trillion, comprising tax receipts of Rp2,357.7 trillion plus customs and excise revenue of Rp334.3 trillion.
Tax reform remains the principal lever for pursuing these targets. The Directorate General of Taxes (DGT) continues to use the coretax system and to strengthen inter-agency data exchange as an instrument for broadening the tax base.
What It Means for Taxpayers
The tax ratio target is a fiscal policy goal, not an obligation that directly burdens individual taxpayers. The government has affirmed that no new tax levy will be imposed to meet this target. Policy is directed at improving compliance and broadening the base rather than raising rates.
Even so, the strengthening of the data base and the coretax system means the DGT has broader supervisory reach over economic activity. For taxpayers, this underscores the importance of administrative compliance: filing tax returns on time, recording income accurately, and ensuring tax identity data is matched. The KEM-PPKF 2027 will still be discussed with parliament before being incorporated into the RAPBN and enacted as the State Budget Law.