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State budget surplus maintained despite election spending increase: Sri Mulyani

Jakarta Globe - April 26, 2024

Arnoldus Kristianus, Jakarta – Finance Minister Sri Mulyani Indrawati announced that as of March 31, Indonesia's state budget (APBN) maintained a surplus of Rp 8.1 trillion ($499.2 million), despite an increase in employee expenditure and the 2024 election spending.

"Our state budget still has a surplus of Rp 8.1 trillion or 0.04 percent of GDP, with a primary balance of Rp 122.1 trillion," she said in a press conference in her office in Central Jakarta on Friday.

State revenue stood at Rp 620.01 trillion, representing 22.1 percent of the target, with a 4.1 percent year-on-year decrease. State expenditure reached Rp 611.9 trillion, 18.4 percent of the 2024 expenditure ceiling, up 18 percent from the previous year, largely due to election spending and increased employee expenditure.

The 2024 election budget realization reached Rp 26 trillion by April 1, 67.9 percent of the Rp 38.3 trillion budget ceiling. The total budget allocated for the 2024 election from 2022 to 2024 was Rp 71.3 trillion.

Employee expenditure soared by 42.8 percent to Rp 70.7 trillion, with salary raises for civil servants (ASN), military and police officers, and retirees. Additionally, Eid bonuses (THR) for 2024 began distribution in March 2024.

"An 8 percent salary increase and a 12 percent pension increase were implemented, along with full THR payment. This year's THR includes a 100 percent increase in performance allowances from the previous year, which was only 50 percent," Sri Mulyani explained.

Tax revenue as of March 31, 2024, reached Rp 393.91 trillion, or 19.81 percent of the 2024 state budget target.

"Tax revenue until the end of March 2024 reached Rp 393.91 trillion, almost 20 percent for one quarter or 19.81 percent of the target," she said.

However, tax revenue slowed due to a significant decrease in commodity prices in 2023, impacting this year.

"The oil and gas income tax experienced an 18.06 percent year-on-year correction. We will monitor oil and gas tax fluctuations based on exchange rates and oil prices," Sri Mulyani added.

Source: https://jakartaglobe.id/business/state-budget-surplus-maintained-despite-election-spending-increase-sri-mulyan