CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Indonesia Expects To Reach Tax Revenue Targets

Indonesia Expects To Reach Tax Revenue Targets

by Mary Swire,, Hong Kong

18 June 2012

Bambang P.S. Brodjonegoro, from the policy unit of Indonesia’s Ministry of Finance, has stated that the government expects tax revenue to be higher this year than last year, and then to achieve its target also next year.

Bambang disclosed that, in 2013, the government could achieve its target for annual tax revenue of IDR1,000 trillion (USD105.2bn). The annual tax revenue target was set at IDR611.22 trillion in 2010, while the target in 2011 was IDR724.63 trillion, and tax collections are expected to reach IDR871.93 trillion this year.

The increased collections, he said, were in line with the government’s efforts to improve its tax database, and boost tax collection in order to relieve pressure on its budget. The government, Bambang continued, “aims to widen the tax base, in addition to the growth of taxes arising naturally from economic growth”.

Last year, the Ministry of Finance launched the national tax census, with the aim of increasing the number of Indonesian taxpayers. It was said that the country’s tax base presently consists of only 7.7% of its potential individual taxpayers, equivalent to 8.5m people out of a possible 110m employees, and only 3.8% of its potential corporate taxpayers, or some 460,000 businesses out of 12m registered firms.

After the census, the government is now targeting other sectors, such as domestic trading. Bambang added that it considers that the trading sector has a substantial turnover, but traders are reluctant to pay their taxes.

TAGS: individuals | compliance | tax | business | tax compliance | commerce | corporation tax | Indonesia | revenue statistics | retail | individual income tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »