Jakarta – The Finance Ministry has projected a revenue shortfall of Rp 140 trillion (US$10.02 billion) from the revenue forecast of Rp 1.58 quadrillion in the 2019 state budget, and thus expects to collect Rp 1.44 quadrillion in revenue by the end of the year.
The government recorded a revenue shortfall of Rp 108.10 trillion last year.
Meanwhile, the ministry said it had collected Rp 603.34 trillion in taxes in the first half of the year, or 38.25 percent of the state budget target and a year-on-year increase of 3.37 percent (yoy) in tax revenue.
"The Directorate General of Taxation's revenue outlook is 91.1 percent of the target," taxation director general Robert Pakpahan said on Tuesday evening at the House of Representatives, as quoted by kompas.com.
Robert cited the global economic slowdown and subsequent decline in commodity prices as the main culprit of the wider shortfall.
Other factors included the rupiah exchange rate, which was likely to be stronger than the Rp 15,000 per US dollar as set in the 2019 state budget, said Robert, adding that the decline in exports also contributed to the revenue shortfall. "Exports have dropped drastically," he said.
Statistics Indonesia (BPS) reported that exports declined 20.54 percent month-to-month (mtm) to $11.78 billion in June, primarily due to a 19.4 percent mtm decline in non-oil and gas exports and a 34.36 percent mtm decline in oil and gas exports. (bbn)