Indonesia Records First Primary Budget Surplus Since 2012

Minister of Finance Sri Mulyani Indrawati. (Photo by: PR of Cabinet Secretariat/Jay)

The 2023 State Budget has reached a new milestone by achieving primary budget surplus for the first time since 2012.

“In 2023, the Central Government Financial Report (LKPP) recorded several prominent achievements. First, we have a primary budget surplus for the first time since 2012. Second, this surplus is also the first one since the implementation of the accrual accounting. Third, this is the first increase in government or state equity without a revaluation since 2015,” Minister of Finance Sri Mulyani Indrawati said in the Plenary Meeting of the House of Representatives (DPR) in Jakarta, Tuesday (08/20).

The Minister said that state revenue that exceeded the target and tax revenue that grew strongly were the main factors behind this achievement. The success shows the resilience of the Indonesian economy amid global pressure, while also proving that prudent fiscal management has a real positive impact.

Sri further said that the Government aims to ensure that the tax ratio continues to increase. According to the Minister, the increase in the 2023 tax ratio was achieved after the tax revenue exceeded the target stipulated by law, and the Government continues to improve its capacity and join hands with all stakeholders.

“The tax ratio is influenced by the economic structure, tax policies, and tax administration systems that must continue to be made more efficient. From the external side, the Government faces a challenging global situation. We also continue to work with other stakeholders in the global taxation forum to prevent tax avoidance practices between countries in the form of base erosion profit shifting,” the Minister remarked. (PR OF MINISTRY OF FINANCE/UN) (RI/LW)