Finance Minister Purbaya Yudhi Sadewa stated that efforts to address inefficiencies in economic conditions from the beginning of the year through August 2025 were not sufficiently effective, preventing the government from fully mitigating the negative impact of the economic slowdown.

According to him, this situation has been one of the key factors behind weak state revenue performance, raising the risk that collections may fall short of the targets set in this year’s state budget (APBN).

“At that time, the economy was slowing from early in the year until August. Why wasn’t there concern then? When the economy slows, the risks naturally follow,” he said to reporters after the APBN Kita press conference in Jakarta on Friday (19/12/2025).

Nevertheless, Purbaya emphasized that the government, particularly fiscal authorities, is now working to close existing leakages in order to optimize state revenue.

At the same time, he reaffirmed the government’s commitment to keeping the budget deficit within the legally mandated limit of below 3%. With these measures, he expressed optimism that fiscal performance would improve next year.

“We are controlling everything and improving tax collection and other related areas,” he said. “What’s clear is that next year will be better, especially as I plan to push economic growth toward 6%.”

Previously, the Ministry of Finance reported that tax revenue collected through the end of November 2025 amounted to Rp1,634.43 trillion, representing a year-on-year decline of around 3.2%.

This figure corresponds to only 78.7% of the full-year APBN outlook target of Rp2,076.9 trillion, meaning the government still needs to secure roughly Rp442 trillion in additional revenue within the final month.

In detail, corporate income tax (CIT) revenue stood at Rp263.58 trillion, down 9%. Personal income tax and Article 21 income tax totaled Rp218.3 trillion, reflecting a decline of 7.8%.

Meanwhile, revenue from final income tax, Article 22, and Article 26 reached Rp305.43 trillion, posting a 1.4% increase. Value Added Tax (VAT) and Luxury Goods Sales Tax (PPnBM) amounted to Rp660.77 trillion, down 6.6%. Other tax revenues came in at Rp186.33 trillion, surging 21.5%.

As a result, the state budget deficit widened to Rp560.3 trillion, equivalent to 2.35% of Gross Domestic Product (GDP), higher than the 1.82% of GDP recorded during the same period last year.