TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsFinance Minister flags looming revenue shortfall amid tax slump
In the first half of this year, the government collected Rp 1.2 quadrillion, the lowest mid-year figure in three years and 9 percent below the same period in 2024.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Finance Minister Sri Mulyani Indrawati prepares devices she is about to use for the state budget presentation before the press in the Ministry's headquarter in Jakarta, on Jan. 2, 2024. (The Jakarta Post/Deni Ghifari)
S
tate revenue is likely to fall short of the target set in the 2025 state budget, Finance Minister Sri Mulyani Indrawati said on Tuesday, citing weaker tax receipts, declining commodity prices and recent policy changes as key factors weighing on collections.
According to the Finance Ministry’s updated projections, total state revenue is now expected to reach only Rp 2.86 quadrillion (US$176.5 billion), or around Rp 139.6 trillion below the official target of Rp 3 quadrillion.
“We’re seeing real pressure on revenues. If you look at first-half collections over the past three years, this year is clearly the weakest,” Sri Mulyani told lawmakers during a hearing with the House of Representatives’ Budget Committee.
Tax revenue, which makes up the bulk of state income, is projected to fall short by about Rp 82 trillion, reaching just 94.9 percent of the Rp 2.71 quadrillion target.
On the spending side, the government expects to disburse Rp 3.53 quadrillion, or about 97.4 percent of its Rp 3.62 quadrillion allocation.
As a result, the budget deficit is now projected to widen to Rp 663 trillion or 2.78 percent of the country’s gross domestic products (GDP), up from the original forecast of 2.53 percent, but still below the country’s legal limit of 3 percent.
Read also: Indonesia posts $4.3b surplus in May on strong exports of CPO, steel
