Jakarta – Indonesia said on Wednesday tax collection in the first seven months of 2001 was above target, raising hopes the government would be able to meet the full year tax revenue target crucial to help plug its budget deficit.

There have been concerns about whether the government would be able to achieve the target because of domestic political instability and slow economic growth this year.

"We have collected 92.2 trillion rupiah ($9.9 billion) from January to July against a revised 91.7 trillion rupiah target," tax director general Hadi Purnomo told Reuters.

Indonesia targeted total tax revenues of 185.3 trillion rupiah in 2001 compared with a previous target of 179.9 trillion. The 2001 budget was revised in June following sharp falls in the rupiah and higher interest rates. Tax revenues accounted for some 65 percent of total domestic revenues.