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Jakarta Post

Government targets 12.9 percent growth in 2019 state revenue

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Fri, August 17, 2018   /   08:21 am
Government targets 12.9 percent growth in 2019 state revenue President Joko "Jokowi" Widodo. (Antara/Wahyu Putro A)

President Joko “Jokowi” Widodo is eyeing 12.9 percent growth in government revenue to Rp 2.14 quadrillion (US$146.5 billion) in his final year in office.

Jokowi announced the target during his speech to reveal the 2019 state budget bill in the plenary session of the House of Representatives on Thursday.

The government continues to pin a lot of hope on tax revenue as it represents more than 80 percent of the target at Rp 1.78 quadrillion.

Meanwhile, non-tax revenue is projected to stand at Rp 361.1 trillion, while the contribution of grants will be Rp 400 billion.

“The increasing role of tax in the funding of the state budget is in line with the government’s efforts to improve tax performance,” President Jokowi said in his speech.

The government will continue to push tax reforms and tax incentives, Jokowi said, mentioning a number of possible policies like tax holidays and tax deductions for strategic sectors.

With such policies, the 2019 tax ratio is expected to stand at 12.1 percent of GDP, up from this year’s projection of 11.6 percent. (bbn)