Revenue-rich Indonesia braces for tighter finances next year


JAKARTA (Bloomberg): Indonesia is bracing for leaner times next year as the commodity windfall that has kept its budget in surplus for seven straight months is expected to taper off.

State revenue will likely fall next year as global coal and palm oil prices weaken, Finance Minister Sri Mulyani Indrawati said Monday. The resource boom is seen earning Indonesia 279 trillion rupiah (US$18.76 billion) in commodity tax revenues and 48.9 trillion rupiah in export levies this year.

Indonesia’s commodity earnings helped offset its generous spending on subsidies to place the budget surplus at 0.57% of gross domestic product in July, putting the country in an enviable spot as its peers grapple with bloated deficits.

Next year, the government will keep wielding the state budget as a "shock absorber” and maintain large state aid to stabilise local prices while keeping a pledge to rein in the deficit to below 3% of GDP, said Indrawati.

President Joko Widodo is slated to present the 2023 annual budget on Aug 16.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Indonesia , finance , budget

   

Next In Aseanplus News

Six charged over Indonesia football tragedy
Thai king to visit nursery shooting survivors
Criminologist suggests teaching public survival skills, as mass shootings 'no longer foreign to Thai society
Budget 2023: Encourage more exports, FDI to boost ringgit's attractiveness, says economist
Constance Wu didn't want to share sexual harassment story: 'Nobody's gonna believe me'
Thailand mourns after over 34 die in daycare centre attack targeting children
Three dead in Jakarta floods after school wall collapse
Thai PM orders probe into ‘horrifying’ shooting
Govt ready to take lead in peacekeeping
Marcos open to buying Russian fuel

Others Also Read