Indonesia: State revenue surpasses target for first time since 2012

• The government reported on 2 Jan 19 that state revenues had surpassed the target as outlined in the 2018 state budget, a feat that Finance Minister Sri Mulyani said was last achieved in 2012.
• State revenue, which includes tax collection and non-tax revenue, was recorded at IDR1.94qd as of 31 Dec 18, according to preliminary Finance Ministry data, or IDR47.6tr above the IDR1.89qd target set in the 2018 state budget.
• Sri Mulyani attributed the performance to improvements in the economy and increased tax collection by the Taxation Directorate General.
• Tax revenue was recorded at IDR1.31qd, or 92.4% from the IDR1.42qd target set in the budget, while the customs office collected IDR205.5tr in customs and excise, above the IDR194.1tr state budget target.
• Relatively high commodity prices, coupled with the rupiah’s depreciation, also contributed to the positive non-tax revenue collection in 2018, which was recorded at IDR407.1tr, or 147.8% of the IDR275.4tr target.
• As a result, Indonesia posted the smallest fiscal deficit in six years in 2018 and less than initially projected. The estimated budget deficit was equal to 1.72% of GDP, narrower than both the government’s original plan of 2.19% and the latest estimate of 1.83%, Sri Mulyani said.
• The 2018 budget also has a IDR4.1tr primary surplus, or budget balance before interest payments, which Indrawati said was the first surplus since 2011.

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External Link: https://jakartaglobe.id/business/indonesia-posts-narrowest-budget-deficit-in-6-years-in-2018-finance-minister/