Sectoral Tax Performance in 2025: Manufacturing Emerges as the Main Contributor

JAKARTA. The manufacturing or processing industry became the largest contributor to Indonesia’s tax revenue realization in 2025. According to records from the Ministry of Finance, total tax revenue realization in 2025 amounted to IDR 1,917.6 trillion.

Of this amount, the manufacturing sector contributed 24.6%, equivalent to IDR 471.17 trillion. Other major sectors—trade, finance and insurance, and mining—contributed 22.6%, 13.5%, and 9.8%, respectively.

Meanwhile, Deputy Minister of Finance Suahasil Nazara noted that tax revenue trends across these four main sectors showed notable dynamics throughout 2025.

After experiencing a contraction in the first quarter of 2025, tax revenue performance improved in the subsequent quarters. In fact, the manufacturing, trade, and finance and insurance sectors recorded positive growth in the fourth quarter.

The mining sector was the only sector to record negative growth throughout 2025, largely due to moderating commodity prices.

Factors Affecting Tax Performance Across Sectors

Below are several factors influencing tax revenue performance across the four sectors.

Manufacturing Industry

Tax revenue from the manufacturing sector throughout 2025 contracted by 0.9% year on year compared to 2024. This decline was mainly driven by increased tax refunds in the palm oil sector.

It is worth noting that tax performance in the manufacturing sector is strongly influenced by factors such as Crude Palm Oil (CPO) price trends and the performance of the non-ferrous basic metals industry.

Trade Sector

Tax revenue from the trade sector in 2025 amounted to IDR 433.68 trillion, representing 22.6% of total tax revenue.

Compared with the 2024 realization, tax revenue from the trade sector declined by 7.7% in 2025. This decrease was attributable to several factors, including the performance of fee-based service trade activities and motor vehicle trading.

In addition, tax revenue performance in the trade sector was also affected by higher tax refunds, particularly in the wholesale fuel (oil and gas) sub-sector.

Finance and Insurance Sector

Compared to the two sectors above, tax revenue from the finance and insurance sector recorded growth of 11.3%.

Tax revenue from this sector reached IDR 258.48 trillion, accounting for 13.5% of total tax revenue.

Mining Sector

The contraction in tax revenue from the mining sector throughout 2025 was driven by the moderation of energy commodity prices.

In addition, high levels of tax refunds were also considered a contributing factor in suppressing tax revenue in the mining sector. (ASP/KEN)