A New Tax Strategy
As of October 2019, tax revenues totaled only about Rp 1.01 quadrillion (US$72.70 billion). This figure is 64.6 percent of the tax revenue target of Rp 1.57 quadrillion stipulated in the 2019 State Budget.
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Finance Minister Sri Mulyani Indrawati delivers a statement on the state budget’s performance on 21 June 2019 at the Finance Ministry, Central Jakarta. Her portrait is superimposed with images of monitors displaying data for the June 2019 APBN KiTa (state budget performance and facts) in this multiple exposure photograph.
The threat of not achieving the tax revenue target and the widening of the tax shortfall is becoming more certain. As of October 2019, tax revenues totaled only about Rp 1.01 quadrillion (US$72.70 billion). This figure is 64.6 percent of the tax revenue target of Rp 1.57 quadrillion stipulated in the 2019 State Budget.
The weak performance of the tax revenues will certainly have an impact on Indonesia\'s fiscal condition. The efforts to meet the tax revenue target for 2020 will also be quite challenging. At the same time, economic pressures require relaxation in the form of tax relief.