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Stay budget growth suggests welfare improvement
This year’s record state budget has shown the improvement of the Indonesian economy. April 2022 saw a greater surplus in the country’s trade balance than the month prior
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his year’s record state budget has shown the improvement of the Indonesian economy. April 2022 saw a greater surplus in the country’s trade balance than the month prior. This continued a 23-month streak of surpluses, since May 2020.
As the Customs and Excise office enforces its position as revenue collector, it is actively contributing to the state revenue surplus. This is proven by the presence of an increase in exports and imports during the 23 months aforementioned, as well as the surplus in revenue from the sector up to and including April 2022.
"This can be proven from the realization of customs and excise revenue until the end of April 2022, which was recorded at Rp 108.38 trillion, or 44.24 percent of the 2022 State Budget target," said the Director of Communication and Guidance for Customs Service Users, Nirwala Dwi Heryanto. He noted that the improvement could be seen from the performance of the revenue components, which had grown from the same period last year.
In nominal terms, the revenue was mainly supported by the receipt of excise fees, particularly on tobacco (CHT), which accounted for 72.48 percent of the total revenue. All components of customs and excise revenue recorded positive and significant growth, consisting of excise fees and import and export duties, which grew 30.82 percent year-on-year (yoy), 33.20 percent yoy and 102.05 percent yoy, respectively.
Nirwala attributed the success to the consistently increasing trend of CHT performance in 2021. Export revenue also exceeded the target by 245.23 percent. He noted that receipts of export duties had been dominated by palm oil products, which increased by 90.22 percent yoy.
By April 2022, the government had realized the state budget for state expenditures in various sectors, one of which was for transfers to regions and village funds of Rp 242.4 trillion. Moreover, funds totaling Rp 77 trillion had also been given as assistance for street vendors, COVID-19 patient care, scholarships and school operational assistance.
Other uses also included the social protection budget, which includes cash transfers and assistance for national health insurance contributions in the amount of Rp129 trillion; subsidy spending, which includes subsidies for 3-kilogram cannisters of liquified petroleum gas (LPG), small business credits and fuel subsidies of Rp 56.6 trillion; and capital expenditures for the modernization of defense and security equipment, construction of network roads and irrigation, as well as improvement of information and communication technology, amounting to Rp 33.4 trillion.
“As a form of accountability, the government will actively promote the management and accountability of the state budget. We also give our appreciation to the people who play an active role in monitoring the management of the state budget," Nirwala concluded.
