Indonesia Assesses the Policy of Financial Liquidity Loan Collaboration
Finance Minister Sri Mulyani Indrawati said Indonesian Economy Its Expected Grow 5.3 - 5.6 in 2020 - Photo: Ministry of Finance

JAKARTA (TheInsiderStories) — Indonesia state budget deficit swelled to Rp101 trillion (US$7billion) in April, almost twice higher than Rp54.9 trillion in the same period last year. Finance Minister Sri Mulyani Indrawati, in a press conference Thursday, explained that Indonesia’s revenue collection was Rp530.7 trillion, while the expenditure reached Rp631.78 trillion.

Indonesia state revenue only grew 0.5 percent from last year. During the period, the revenue collection reached 24.51 percent target.

The revenue realization contributed by taxation revenue for Rp436.41 trillion and non-tax revenue for Rp94 trillion that reached 24 percent and 24.8 percent target respectively. Meanwhile, the grant received was Rp354.3 billion or 81.3 percent target.

Tax revenue realization recorded a slowdown growth by only 1.02 percent compared to the previous year. Until April, the government collected at Rp387 trillion tax or 24.53 percent target. Customs and excise grew significantly by 47 percent YoY to RP49.4 trillion or fulfilled 23.66 percent target, supported by excise receipts that rocketed 82.3 percent. According to Indrawati, there’s shifting so there was more collection at the beginning of the year.

Amid the slowdown revenue, Indonesian government spent more on the state expenditure. Until April, the allocated expenditure was Rp631.78 trillion or 25.67 percent limit. The realization increased by 8.38 percent from the same period last year.

“Based on the achievements until the end of April 2019, it is estimated that the implementation of 2019 state budget can be maintained to support economic growth targets and state budget deficit is 1.84 percent per GDP (gross domestic product),” said Indrawati.

She considered that Indonesia’s state budget could maintain economic growth above 5 percent. So far, Indonesia’s inflation could be maintained below 3 percent, even though there was pressure on horticulture commodities, chicken eggs, and air freight rates price. In April, the year-on-year inflation was 2.83 percent. Meanwhile, month-to-month inflation was 0.44 percent.

“Government will continue to be aware of the slowing down and uncertain global economy dynamics by implementing a countercyclical state budget. The government will also manage state finances with a prudent, measurable, and transparent manner so that the state budget remains credible,” said Indrawati.

1US$=Rp14,200

Written by Staff Editor, Email: theinsiderstories@gmail.com

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