Indonesia's Revenue in 2022 Exceeds Target: ADB

TheIndonesia.id - Senior Economist of the Asian Development Bank (ADB) Henry Ma estimates that Indonesia's state revenue in 2022 will again exceed the last year's target of Rp2,031 trillion or 114.9 percent of the 2021 State Budget target of Rp1,743.6 trillion. As for this year, the state revenue is targeted at IDR 1,846.1 trillion in the State Budget (APBN).

"The economic recovery continues to strengthen in Indonesia this year," Henry said in a virtual media briefing in Jakarta, Wednesday, April 6, 2022.

ADB sees three reasons underlying the estimated increase in state income that could exceed the target, firstly, the increase in economic activity in the country. This can be seen from the increasing number of indicators of consumer activity in the first quarter of this year, such as the consumer confidence index, retail sales index, and so on.

The second reason is that there are several changes in tax policy that have been implemented this year.

The third reason is that although there is an increase in global wheat and crude oil prices which have the potential to raise inflation, the increase in coal, palm oil, and nickel prices will provide higher income for Indonesia. "Thus, the impact of the commodity price shock on fiscal conditions should be negative, but modest or modest," he said.

Even so, he estimates that inflation may increase to 3.6 percent this year due to rising food and fuel prices will put pressure on the government's subsidy policy. In terms of monetary policy, Bank Indonesia (BI) this year is not expected to be very supportive because the Central Bank will increase its reserve requirements, while burden-sharing with the government will only be carried out until the end of this year.