Gov’t Projects 2023 Revenue to Reach Rp2,443.6 Trillion
The Indonesian Government has estimated the 2023 State Revenue will reach Rp2,443.6 trillion, sourced from Rp2,016.9 trillion tax revenue and Rp426.3 trillion non-tax state revenue.
“The State Revenue will be garnered by optimizing tax revenue and reforms of non-tax state revenue management,” President Joko “Jokowi” Widodo said at Presentation of the Government Statement on the Bill on the State Budget for the 2023 Fiscal Year and its Financial Note at the opening of the Plenary Meeting Session I for 2022–2023 at the Parliamentary Complex, Jakarta, Tuesday (08/16).
According to the President, the Government will continue tax reforms to strengthen independence in financing development.
“Tax reforms are carried out through expansion of tax base, improvement of compliance, and enhancement of tax governance and administration in improving tax ratio. In addition, the availability of various accurate and measured tax incentives is expected to boost acceleration of national investment competitiveness recovery and improvement, and to spur economic transformation,” President Jokowi said.
Meanwhile, to augment non-tax state revenue, the Government, he added, continues to take measures by revamping the planning and reporting process with integrated information technology, reinforcing the governance and monitoring, optimizing asset management, intensifying the collection and settlement of account receivables, as well as improving service innovation by maintaining quality and affordability of services.
“By scrutinizing state expenditure and optimizing state revenue, the 2023 budget deficit is set at 2.85 percent of the GDP or Rp598.2 trillion. The 2023 budget deficit is the first year Indonesia returns to the deficit of a maximum of 3 percent of the GDP”, the President said.“The deficit will be addressed by utilizing safe and carefully managed financing sources by maintaining fiscal sustainability. The commitment to ensuring fiscal sustainability is manifested to keep debt risk constantly within a safe limit through the financial market analysis,” he added.
Furthermore, the President underscored that the Government continues to improve effectiveness of investment financing, especially to state-owned enterprises and public service agencies, directed to complete strategic infrastructure in the Central Government and regional governments, empower the people, and maintain synergy between financing and expenditure. In addition, the President also pushed for an innovative PPP financing scheme.
“The Government continues to push for an innovative PPP financing scheme, including by reinforcing the role of state-owned enterprises, public service agencies, the Investment Management Institution (LPI), and the Special Mission Vehicle (SMV), as well as to accelerate infrastructure development and to improve financing access for low-income people, MSMEs, and ultra-micro enterprises,” the President stated.
With strong fiscal management as well as effectiveness in boosting economic transformation and improvement of people’s welfare, the Government also expects open unemployment rate in 2023 to be curbed in the range of 5.3 percent to 6.0 percent. Additionally, other indicators are also expected to be in the range predicted by the Government.
“Poverty rate is expected to be curbed in the range of 7.5 percent to 8.5 percent, Gini ratio in the range of 0.375 to 0.378, as well as Human Development Index in the range of 73.31 to 73.49. Moreover, Farmers Exchange Value (NTP) and Fishers Exchange Value (NTN) are expected to increase to 105-107 and 107-108 respectively,” the President remarked. (FID/MAY/DND/UN) (FI/EP)