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Jakarta Post

Sluggish economy takes toll on tax receipts

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Thu, November 21 2019   /  12:23 am

The current weakness of Indonesia’s economy is weighing on state finances, as the manufacturing and trading sectors — the primary contributors to tax income — recorded negative growth in the first 10 months of this year.Business players have confirmed that economic activity weakened throughout this year compared with last year, which in turn has impacted state coffers.Indonesian Footwear Association (Aprisindo) chairman Eddy Widjanarko said domestic footwear sales had dropped this year while labor costs had increased, particularly in Tangerang, Banten, one of the industry’s production centers in the country.The recent increase in the minimum wage in Tangerang had forced around 20 shoe factories to relocate to Central Java, and more were expected to follow suit by the end of this year, said Eddy.“Many factories in Banten have relocated to Central Java, while we are still in the ...