Indonesia's successful tax amnesty program - that ran between July 2016 and March 2017 - should contribute to an improving tax-to-GDP ratio for Southeast Asia's largest economy. Indonesian taxpayers declared some IDR 4,880.9 trillion (approx. USD $367 billion) in previously undeclared assets under the program. This result will also have a positive impact on tax revenue in 2018 although Dwijugiasteadi added it remains unknown how much percent of these total declared assets can be taxed (authorities are still calculating this matter).

Regarding Indonesia's 2018 State Budget, Indonesian Finance Minister Sri Mulyani Indrawati suggests to set the macroeconomic growth target between the wide margin of 5.4 percent and 6.1 percent year-on-year. However, several fractions in the DPR said this assumption is unrealistic considering the global and domestic economies are not fully recovered yet, while protectionism is gaining ground across the globe.

It is interesting to note that former World Bank Director Indrawati is actually known as a "realistic policy maker". Since she has re-entered the Indonesian cabinet the central government's budget planning has been realistic and this is among the reasons why Indonesia finally obtained the investment grade status from Standard & Poor's several weeks ago.

Indonesia's 2018 State Budget Assumptions:

  State Budget
  Draft 2018
GDP Growth
annual percent change
annual percent change
Exchange Rate
Treasury Bills Interest Rate
3-month, percent
Indonesian Crude Oil
USD $ per barrel
Natural Gas Lifting
barrel of oil equivalent/day

Source: Bisnis Indonesia