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Govt rises revenue target and seeks less debt issuance in 2023 state budget
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Financial Services Authority (OJK) chairman Mahendra Siregar (left), Finance Minister Sri Mulyani Indrawati (second left), Bank Indonesia Governor Perry Warjiyo and Indonesian Deposit Insurance Corporation (LPS) head Purbaya Yudhi Sadewa pose for a photo on Nov. 3, 2023, in the BI office. (The Jakarta Post/Deni Ghifari)
T
he government has decided to alter its 2023 state budget to reflect an upward revision in its revenue collection target, which allows the country to afford higher spending.
These changes were made through Presidential Regulation No. 75/2023, which revised the previous posture stipulated under Presidential Regulation No. 130/2022. The government said it had discussed the matter with the House of Representatives Budget Committee and Bank Indonesia.
Under the new regulation, tax revenue, including customs and excise, is upgraded by 4.58 percent to Rp 2.11 quadrillion (US$130 billion) from the previously stipulated Rp 2.02 quadrillion.
The new tax revenue target set in November is in line with the government’s projection in July expecting much higher revenue collection this year at Rp 2.11 trillion.
Read also: Govt targets tax revenue hike despite commodity price drop
The increase set in the regulation is attributed to income taxes that were increased by 12 percent to Rp 1.04 quadrillion in the revised budget, contributed to from across all categories, such as corporate, employee and oil and gas.
Meanwhile, the targets for value-added tax (VAT) and luxury tax were lowered to Rp 731 trillion, 1.4 percent lower than the previous figure.
