Jakarta (ANTARA) – Indonesia’s government affirmed friday it possesses sufficient financial reserves to maintain ongoing development programs despite a slowdown in tax collection during the first half of 2025.
Finance Minister Purbaya Yudhi Sadewa stated, “Even if tax revenues fall short of the target, there is no need to worry. We still have a notable excess budget balance from last year.” He reassured reporters at the Coordinating Ministry for Economic Affairs, “Do not be afraid that the government does not have the money to build.”
The nation’s excess budget balance from the 2025 state Budget currently totals Rp457.5 trillion (approximately $27.8 billion). Of this amount, Rp16 trillion ($973.8 million) is allocated to the Merah Putih Cooperatives program, and Rp85.6 trillion ($5.2 billion) will address the widening budget deficit.
Sadewa acknowledged a deceleration in tax revenue, specifically in Value-Added Tax and Luxury Goods Sales Tax, attributed to decreased household spending and a softer economic performance. However, he anticipates a revenue rebound in the final quarter, bolstered by stimulus initiatives and a Rp200 trillion ($12.2 billion) capital injection into five major banks designed to stimulate the real sector.
“If all the programs are implemented as planned, I believe the targets will be achieved and economic growth will reach the levels we projected,” Sadewa said.
Data from the Directorate General of Taxes indicates state tax revenue reached Rp990 trillion ($60.3 billion) as of July,a 5.29 percent decrease from Rp1,045.3 trillion ($63.6 billion) collected during the same period in 2024.
Despite the decline, director General Bimo Wijayanto noted that tax revenue’s share of total state income increased by 1.67 percent compared to the first half of 2024.
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translator: Imamatul Silfia, Kuntum Khaira Riswan
Editor: Rahmad Nasution
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