{"id":196,"date":"2025-04-05T08:00:27","date_gmt":"2025-04-05T01:00:27","guid":{"rendered":"https:\/\/provisio-id.com\/provisioconsulting\/?p=196"},"modified":"2025-04-05T08:00:27","modified_gmt":"2025-04-05T01:00:27","slug":"tax-revenue-not-achieved-what-should-be-improved","status":"publish","type":"post","link":"https:\/\/provisio-id.com\/provisioconsulting\/tax-revenue-not-achieved-what-should-be-improved\/","title":{"rendered":"Tax Revenue Not Achieved, What Should be Improved?"},"content":{"rendered":"\n

https:\/\/provisio-id.com\/provisioconsulting <\/a>– Tax Revenue Target 2024 Not Achieved, What Should be Improved? Tax Revenue Not as Expected, Indonesia’s tax revenue performance in 2024 recorded results that did not meet the target. By the end of the year, the realisation of tax revenue was recorded at IDR 1,932.4 trillion, or only 97.2% of the 2024 State Budget target of IDR 1,988.9 trillion. Despite being below the target, the figure shows a 3.5% growth compared to 2023. These results were presented at the Ministry of Finance Press Conference on Monday (6\/1).<\/p>\n\n\n\n

Deputy Minister of Finance III, Anggito Abimanyu, assessed that this failure was largely due to weak tax revenue in the first semester, particularly in strategic sectors such as mining and manufacturing. Global economic conditions and the moderation of commodity prices also affected the final result.<\/p>\n\n\n\n

This article will review the main challenges faced, analyse the causes, as well as the strategic steps that need to be taken to improve tax revenue going forward.<\/p>\n\n\n\n

Challenges in the First Half of 2024: Impact of Commodity Price Moderation<\/p>\n\n\n\n

In the first and second quarters of 2024, tax revenue contracted significantly. Revenue in the first quarter was only IDR 393.9 trillion, down 8.8% compared to the same period last year. This trend continued in the second quarter with Rp 499.9 trillion, 7.2% lower than the previous quarter.<\/p>\n\n\n\n

Read also: Government Sets Tax Revenue Target for 2025, Here Are the Details!<\/p>\n\n\n\n

This decline was due to the weak profitability of the coal mining sector and the palm oil processing industry. Data shows that the moderation of global commodity prices in 2023 has put a huge pressure on corporate profits, which then impacts corporate income tax (PPh) receipts.<\/p>\n\n\n\n

Recovery in the Second Half: The Role of Transactional and Industrial Sectors<\/p>\n\n\n\n

Despite facing a difficult start, tax revenue started to show improvement in the second half. In the third quarter, revenue reached IDR 461 trillion, growing 10.4% on an annualised basis. This increase was driven by transactional taxes such as domestic income tax, income tax Article 22 on imports, and import VAT<\/a>.<\/p>\n\n\n\n

The fourth quarter recorded a more significant increase, with revenue of IDR 577.6 trillion or growing 20.3% yoy. Increased economic activity in the trade, manufacturing, finance, and insurance sectors were the main factors. Anggito added that the improving profitability of the copper mining sector also helped improve the overall tax revenue performance.<\/p>\n\n\n\n

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