Indonesia: Govt Targeting 8.2 Percent Increase in State Revenue

• Aug 17, 2017

TEMPO.CO, Jakarta – The government is targeting Rp1,878.4 trillion in state revenue or an 8.2 increase in the draft 2018 state budget (RAPBN).

Finance Minister Sri Mulyani said that out of the Rp1,878.4 trillion, tax revenue target is set at Rp1,609.4 trillion and non-tax revenue at Rp267.9 trillion.

“It’s more moderate than the projected tax revenue growth for this year which was above 14 percent. It was set moderately because we don’t want to put pressure on businesses. But it does not necessarily mean that tax reforms will slow down,” she told a press conference on the Financial Note and Draft 2018 State Budget (RAPBN) in Jakarta yesterday, August 16.

According to Sri Mulyani, to achieve the target, the government will continue tax reforms and exploit the Automatic Exchange of Information (AEoI), as well as prevent base erosion profit shifting. “We will also continue to educate people to improve tax compliance,” she said.

In non-tax revenue (PNBP), the government is aiming tax revenues of Rp77.2 trillion from the oil and gas sector and Rp22.1 trillion from the non-oil and gas sector. Meanwhile, tax revenues from the banking sector and the nonbanking sector are expected at Rp11 trillion and Rp32.7 trillion, respectively. “That would be in dividends,” Sri said.

Source: https://en.tempo.co/read/news/2017/08/17/056900738/Govt-Targeting-82-Percent-Increase-in-State-Revenue