Jakarta – The government is expecting the prices of the main contributors to non-tax revenue – oil and coal – to increase next year.

Finance Ministry fiscal policy head Suahasil Nazara said in Jakarta on Monday that as of May, the government had earned Rp 145 trillion (US$10 billion) in non-tax revenue, 52 percent of this year's total target of Rp 275 trillion.

It grew 18.66 percent year-on-year (yoy) from May 2017, when non-tax revenue from natural resources was recorded at Rp 122.2 trillion, thanks to an increase of the Indonesian Crude Price (ICP) and coal reference rate (HBA).

"The price increase of the commodities would still continue next year," Suahasil said as reported by kontan.co.id.

The 2019 state budget bill projects the ICP at between $60 and $70 per barrel. The average ICP in May was $72.46 per barrel, an increase from Rp 67.43 per barrel in the previous month. Meanwhile, the ICP assumption in the 2018 state budget is $48 per barrel.

The HBA in May was decided at $89.53 per ton, a decline by $5.22 per ton from the previous month. In May 2017, the figure was $83.82 per ton.

Finance Ministry non-tax revenue director Mariatul Aini said the collection of non-tax revenue from oil and gas reached Rp 50.6 trillion, a growth of 43.75 percent yoy or 62.98 percent of this year's target.

Meanwhile, revenue from the non-oil and gas sector reached Rp 14.25 trillion, a growth of 31.94 percent yoy or 61 percent of this year's target. (bbn)

Source: http://www.thejakartapost.com/news/2018/07/03/non-tax-revenue-to-rely-on-commodities-in-2019.html