Update COVID-19 in Indonesia: 365,240 confirmed infections, 12,617 deaths (19 October 2020)
19 October 2020 (closed)
USD/IDR (14,738) +41.00 +0.28%
EUR/IDR (17,395) -10.41 -0.06%
Jakarta Composite Index (5,126.33) +22.92 +0.45%
In the revised state budget, Indonesia's government has lowered its forecast for tax revenue in 2013. Originally, the government expected to receive IDR 1,193.0 trillion (USD $122.4 billion) but the figure has been tuned down to IDR 1,139.3 trillion (USD $116.9 billion). Minister of Finance Chatib Basri stated that the forecast for tax revenue has been revised down by IDR 55.1 trillion, while the figure for export duties has been raised by IDR 1.4 trillion. Indonesia's tax-to-GDP ratio in 2013 has been changed to 12.11 percent from 12.87 percent.
Forecasted revenue that is gained from income taxes in Indonesia's non oil & gas sector has been revised down by IDR 53.5 trillion as mining companies and export companies posted weaker earnings. Commodity prices have not recovered yet due to global economic turmoil which seriously lessened demand for Indonesia's commodities.
Tax efficiency in Indonesia is low. Currently, the country's total tax revenue ratio is only around 12 percent of Gross Domestic Product (GDP). This constitutes one of the lowest numbers among emerging economies and among the G-20 (the group of twenty major economies, of which Indonesia is a member). Developed countries (such as the United States, United Kingdom, Germany and France) have a tax to GDP ratio ranging between 25 and 45 percent. With 12 percent Indonesia finds itself on par with countries such as Ethiopia, Guatemala and Uganda. Personal income tax revenues are as low as one percent of GDP, while both value-added tax and corporate income tax each raise around four percent of GDP. These numbers are low compared to developed countries and indicate that Indonesia's current ongoing tax administration reform is necessary to increase tax compliance and improve auditing.
|Revised State Budget||Original State Budget|
|a. Non Oil & Gas||460.0||513.5|
|b. Oil & Gas||70.8||71.4|
|Added Value Tax||423.7||423.7|
|Land & Buildings Tax||27.3||27.3|