6 hours ago
8
March 15, 2025 | 04:22 pm
TEMPO.CO, Jakarta - Economist Awalil Rizky from Bright Institute assessed that the Finance Ministry is refusing to acknowledge the weakening dynamics of the national economy, as evidenced by declining tax revenue.
"The Finance Ministry is not acknowledging the economic slowdown of the past two months, which has led to a decrease in tax revenue," Awalil said in a written statement quoted on Saturday, March 15, 2025.
Awalil explained that tax revenue through February 2025 reached Rp240.4 trillion, a drop of approximately 24.99 percent from last year's Rp320.51 trillion. "Even the better performance of the first two months of last year failed to meet the tax revenue target," he continued.
According to Awalil, tax revenue performance is also affected by the cancellation of the general value-added tax (VAT) increase. The government opted to increase VAT only on luxury goods, while the broader VAT increase was initially included in the revenue target. "There is also no acknowledgment that the problematic implementation of Coretax contributes to the tax revenue performance," Awalil added.
Awalil argued that the ministry's explanations cannot mask the fact of declining tax revenue. Therefore, the government must prepare risk mitigation for potentially poor tax revenue realization, far from the target. "Overall, the state revenue conditions of the first two months of 2025 should serve as a warning," he emphasized.
The Finance Ministry previously reported specific tax revenue through February 2025 at only Rp187.8 trillion. This represents a decrease of approximately 30.1 percent compared to the same period last year, when tax revenue reached Rp269.02 trillion.
Finance Minister Sri Mulyani Indrawati urged the public not to "dramatize" the tax revenue decrease in the first two months of 2025, as this would create fear and negatively impact the economy.
"I ask you all not to dramatize to create fear. It may work, but it's not good for all of us. It's also not good for the economy," Sri stated in a press conference at the Finance Ministry building, Central Jakarta, on Thursday, March 13, 2025.
Ervana Trikarinaputri contributed to the writing of this article.
Editor’s Choice: Indonesia's Finance Ministry Mums on Coretax Impact as Tax Revenue Plummets
Click here to get the latest news updates from Tempo on Google News
Gerindra Officials Respond to Rumors of Sri Mulyani's Resignantion
21 jam lalu
Deputy Chairman of the Gerindra Party, Sufmi Dasco Ahmad, dismissed the issue concerning Finance Minister Sri Mulyani's resignation.
Budget for Smart Indonesia Program Slashed by Nearly Rp4tn, Says Official
1 hari lalu
Sofia Nurjanah, Head of the Smart Indonesia Program (PIP) Working Team, said this year's allocated funds are about Rp9.6 trillion.
Indonesia's Finance Ministry Mums on Coretax Impact as Tax Revenue Plummets
1 hari lalu
The Ministry of Finance did not mention any issue regarding Coretax in the APBN KiTa presentation for January-February 2025
Indonesia Keeps 2025 Budget Deficit Forecast Unchanged Despite Tax Revenues Slump
2 hari lalu
Indonesia's government is maintaining its forecast that the budget deficit will be 2.53% of GDP this year.
Ministry Reports Rp710.5bn Disbursed from State Budget for Free Nutritious Meals
2 hari lalu
As of March 12, 2025, the Free Nutritious Meal Program has reached more than 2 million beneficiaries.
Sri Mulyani Reports State Budget Deficit of Rp31.3tn, Tax Revenue 8.6% Below Target
2 hari lalu
Sri Mulyani also presents the realization of state expenditure until the end of February, amounting to Rp348.1 trillion.
Indonesia's Tax Office Announces Latest Improvements for Coretax
10 hari lalu
Indonesia's Tax Office announces latest update to the Coretax's technical issues on XML after previously asking users to do the coding themselves.
Indonesian Govt to Cover VAT on Eid Holiday Airplane Tickets
12 hari lalu
The government will reduce the price of airplane tickets during the Eid holiday migration by covering the VAT cost starting March 1, 2025. Here are the details.
ORI027 Retail Bonds Achieve Record-High Sales of Rp37.35 Trillion
14 hari lalu
All funds raised from the issuance of ORI027 state bond series will be used to meet the financing targets outlined in the 2025 State Budget.
Tax DG Relieves Penalties Amid Coretax System Transition
14 hari lalu
The Directorate General of Taxes of the Finance Ministry has waived administrative sanctions for late payment of taxes due to Coretax problems.
