Customs and Excise Revenue Remains Stable Despite Drop in Tax Revenue: Sri Mulyani

Finance Minister gives a press statement. (Photo by: Ministry of Finance)

The Government has announced that state revenue until the end of May was recorded at Rp664.3 trillion, with the revenue in general seeing a contraction as the country is reeling from the impact of the COVID-19 pandemic.

However, according to Minister of Finance Sri Mulyani Indrawati, customs and excise revenue remains stable.

“State revenue until the end of May stood at Rp664.3 trillion, accounting for 37.7 percent from the target set in Presidential Regulation Number 54 of 2020 on Amendment to the 2020 State Budget. Compared to that of the same period last year, the revenue saw a contraction of 9.0 %. Tax revenue was recorded at Rp526.2 or 36 percent from the target set in Presidential Regulation Number 54 with a contraction of 7.9 percent,” she said in her report on the realization of state revenues outlining the State Budget performance in May 2020.

The Minister also pointed out that tax revenue until the end of May stood at Rp444.6 trillion or 35.4 percent from the target set in Presidential Regulation Number 54 or a contraction of 10.8 percent compared to that of the same period last year.

“Customs and Excise grew by 12.4 percent to Rp81.7 trillion or 39.2 percent from the target set in Presidential Regulation Number 54. Non-tax state revenue stood at Rp136.9 trillion or 46 percent with a contraction of 13.6 percent,” she said.

The former World Bank Group managing director also noted that many countries have seen a negative growth in Q1 due to the impact of COVID-19, adding that countries seeing positive growth in Q1 are also predicted to post a negative growth in Q2.

“Given that the implementation of large-scale social restrictions (PSBB) is still in place, Indonesia is expected to see a minus growth in Q2, between minus -0.4 and 2.3 percent even though our point estimate is close to zero to 1 percent. However, the country’s economic outlook is forecast to start to improving in Q3 and see a positive outlook in Q4,” she said.

The World Bank, the Minister continued, has also revised the 2020 global economic growth forecast by minus 5 percent without calculating the second wave of the pandemic.

Global institutions have also projected growth in the range of -3 to -6 percent, while it can hit a minus 2 digits for developed countries, she added.

“The negative economic growth is also affected by the country’s export performance, which saw a contraction as export destination countries are also facing heavy pressure,” the Minister said. (Ministry of Finance/EN)

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas