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State revenue down 4.3% yoy as of July, but Sri Mulyani sees progress
The finance minister noted that the situation had improved when compared to the 6.19 percent year-on-year (yoy) decline recorded in the first half of the year.
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Finance Minister Sri Mulyani Indrawati (wearing red) and ministry staffers pose for a photo before a press briefing on May 27, 2024, at her Jakarta office. (JP/Deni Ghifari)
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tate revenue collected in the first seven months of 2024 is down 4.3 percent from the same period last year, a fact the government blames on a decline in commodity prices and lower domestic crude oil production.
Briefing reporters in Jakarta on Tuesday, Finance Minister Sri Mulyani Indrawati noted, however, that the situation had improved when compared to the larger year-on-year (yoy) dip recorded in the year's first six months.
“The state revenue performance was good in the beginning of the year but has been under pressure since March. Currently, the negative growth has flattened, indicating a turnaround in economic conditions. We hope to see positive growth in the coming months,” Sri Mulyani said.
As of July, the government had collected Rp 1.55 quadrillion (US$97.52 billion) in revenue from taxes, nontax sources, customs and excise.
Tax revenue, which accounts for the lion’s share of the government’s income, was down 5.8 percent yoy in the January-July period.
Employee income tax rose 26.6 percent, indicating an increase in wages and an improvement in economic activity.
Corporate income tax, on the other hand, plummeted 33.5 percent with a significant impact on overall tax collection, as it was the second-largest source of tax revenue with a contribution of 18.4 percent. The Finance Ministry noted that this was due to a decrease in commodity prices that had led to lower profitability for companies operating in the sector.
