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State finances still solid, but govt wary of trend
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Done deal: Finance Minister Sri Mulyani Indrawati hands in the government’s response to the deliberation of the draft state budget for 2022 to House of Representatives Speaker Puan Maharani during a plenary session on Sept. 30, 2021. (Antara/Dhemas Reviyanto)
T
he Finance Ministry has warned that a slowing global economy could hurt Indonesia’s budget, as weaker commodity exports take a toll on customs and excise as well as on non-tax revenue.
The government still expects to beat its overall budget revenue target for this year, however.
Speaking in front of the House of Representatives Budget Committee on Monday, Finance Minister Sri Mulyani Indrawati revealed that two out of three components of state income would exceed the targets set last year.
“Regarding the [state revenue] level, we remain optimistic. Regarding the trend, we must be on alert,” Sri Mulyani said in front of the lawmakers.
She elaborated that income from customs and excise, taxes as well as non-tax state revenue would enter a downtrend.
The former is the only component projected to miss the target, as it was forecast to pour Rp 300.1 trillion (US$19.8 billion) into state coffers, while the target is set at Rp 303.2 trillion.
Meanwhile, tax revenue is expected to exceed the target by 5.8 percent as the ministry projects income of Rp 1.818 quadrillion from the component, exceeding the targeted Rp 1.718 quadrillion.
