2017 State Budget: State Revenue Still Relies on Taxes

In the 2017 State Budget (APBN), the Indonesian government targeted state revenue of Rp 1,750.3 trillion. Of this amount, government revenue still relies heavily on taxes to finance development and civil servant salaries. Taxes contributed 85.6 percent, or Rp 1,498 trillion, of the state revenue budget. Approximately 14.3 percent, or around Rp 250 trillion, came from non-tax state revenue (PNBP), and 0.1 percent, or around Rp 1.4 trillion, came from grants.

In 2017, tax revenue was projected to grow by 13.5 percent. With economic growth targeted at 5.1 percent and inflation around 4 percent, nominal economic growth would reach 9 percent. However, to achieve this growth, the Directorate General of Taxes (DJP) needed to make an extra effort, intensifying tax collection and utilizing a new tax base through the tax amnesty program.

Meanwhile, in the 2017 APBN, the government targeted revenue from the PNBP sector at Rp 250 trillion, taking into account the global economic conditions which had not yet fully recovered.