Manufacturing Industry, Top Tax Revenue Contributor in October 2023

The Ministry of Finance (Kemenkeu) reported that Indonesia's tax revenue reached Rp1,523.7 trillion from January to October 2023.

Finance Minister Sri Mulyani stated that this figure represents 88.69% of the target in the 2023 State Budget (APBN). She also expressed optimism that tax revenue will reach the target of Rp1,818.24 trillion by the end of the year.

By business sector, the manufacturing industry was the largest contributor, accounting for 27.3% of total tax revenue up to October 2023.

This sector grew by 2.7% year-to-date (ytd), influenced by a slight improvement in import performance and an increase in refunds.

The trade sector followed in second place, contributing 24.2% to domestic tax revenue. This figure increased slightly by 0.4% (ytd) compared to the same period last year.

Sri Mulyani mentioned that trade tax revenue had contracted in recent months, influenced by non-recurring fuel compensation payments.

"Later, if we pay some compensation at the end of the year, it might experience some recovery," said Sri Mulyani in a virtual press conference on Friday, November 24, 2023.

This was followed by tax revenue from the finance and insurance sector and the mining sector, which contributed 11.9% and 10.1%, respectively, until last month.

Meanwhile, tax revenue from the transportation and warehousing; construction and real estate; information and communication; and company services sectors contributed less than 5% to tax revenue during January-October 2023.

(See also: 5 Provinces with the Highest Regional Tax Growth in August 2023, Bali Leads)