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Indonesian state budget records $10b surplus in 1st half of 2023

Jakarta Globe - July 4, 2023

Arnoldus Kristianus, Jakarta – The Indonesian state budget has reported an impressive surplus of Rp 152.3 trillion ($10 billion) in the first half of 2023, largely attributed to the attainment of 57 percent of the full-year tax revenue target.

Finance Minister Sri Mulyani Indrawati took to her Instagram account to announce the positive news, writing: "The primary balance also achieved a surplus of Rp 368.2 trillion, reflecting exceptionally favorable outcomes."

In her post, the minister disclosed that the revenue for the first half of the year amounted to Rp 1,407.9 trillion, equivalent to 57.2 percent of the annual target. This overall state revenue consisted of Rp 970.2 trillion in tax revenue (representing 56.5 percent of the target), Rp 135.4 trillion in customs and excise revenue, and Rp 302.1 trillion in non-tax revenue.

Furthermore, the amount of tax revenue collected witnessed a year-on-year growth of nearly 10 percent.

Meanwhile, the total expenditure for the period stood at Rp 1,254.7 trillion, equivalent to 41 percent of the full-year target. This represents a 0.9 percent increase compared to the expenditure during the first half of the previous year.

Out of the central government's Rp 891.6 trillion expenditure, 55.2 percent was allocated to social assistance, scholarships for children from low-income families, health insurance premiums for the impoverished, as well as subsidies for fuel, electricity, cooking gas, and fertilizer.

"These allocations have a direct impact on the daily lives of the Indonesian populace," Sri Mulyani said.

Additionally, priority spending was directed towards preparations for the general elections, defense equipment, infrastructure, and the development of the State Capital Nusantara (IKN), she wrote without going into details.

Source: https://jakartaglobe.id/business/indonesian-state-budget-records-10b-surplus-in-1st-half-of-202