Indonesia's Tax Revenue Reaches Rp1,716.8 Trillion in 2022, Exceeding Pre-Pandemic Levels

The Ministry of Finance reported that tax revenue reached Rp1,716.8 trillion throughout 2022. This achievement reached 115.6% of the tax revenue target in Presidential Regulation 98/2022, which was set at Rp1,485 trillion.

This realization even increased by 34.3% compared to the previous year (year-on-year/yoy). Tax revenue realization in 2021 amounted to Rp1,278.6 trillion.

"We see, for two consecutive years the increase has been extraordinary. In 2021, (tax revenue realization) grew by 19.3%, while in 2022 it grew by 34.3%," said Minister of Finance Sri Mulyani in a press conference on the 2022 State Budget Realization, Tuesday (3/1).

From the graph above, the amount of Indonesia's tax revenue realization in 2022 also exceeded the pre-Covid-19 pandemic figures.

The soaring realization of tax revenue in 2022 was driven by almost all tax components which also exceeded targets, including non-oil and gas income tax (PPh nonmigas), value-added tax and luxury goods tax (PPN and PPnBM), and oil and gas income tax (PPh migas).

The details are as follows: non-oil and gas income tax revenue amounted to Rp920.4 trillion or 122.9% of the target. This realization recorded a 43% year-on-year (yoy) growth.

Then, the realization of VAT and luxury goods tax amounted to Rp687.6 trillion or managed to reach 107.6% of the target and grew by 24.6% (yoy). According to Sri, this achievement growth was driven by increased economic activity and changes in VAT rates.

Furthermore, the realization of oil and gas income tax amounted to Rp77.8 trillion or reached 120.4% of the target, and grew by 47.3% (yoy).

Sri Mulyani said that the performance growth of oil and gas income tax was driven by the increase in the price of oil and gas commodities. Meanwhile, non-oil and gas income tax was supported by economic activity and a policy mix.

The realization of Land and Building Tax (PBB) and other taxes was only Rp31 trillion or 95.9% of the target. However, this realization still grew slightly by 3% year-on-year (yoy).