Jakarta Globe is reporting that Indonesia’s state revenue dropped by 12.4 percent year-on-year in the first four months of 2025, reflecting weaker collections from both tax and non-tax sources, the government announced Tuesday (20/5/25.)
From January to April, the state collected IDR 810.5 trillion (approximately USD 49.4 billion), down from IDR 925.2 trillion during the same period last year, according to Finance Minister Sri Mulyani Indrawati.
Despite the annual decline, the figure represents 26.4 percent of the full-year target of IDR 3,005 trillion (approximately USD 183 billion). Sri Mulyani told lawmakers that monthly revenues continued to show growth, even as global economic headwinds persist, says Jakarta Globe.
“After posting a deficit for three consecutive months, we saw a turnaround in April,” she said, noting a modest budget surplus of IDR 4.3 trillion, or 0.02 percent of GDP.
Tax revenue totaled IDR 657 trillion, a decline of 8.7 percent compared to the same period in 2024. Non-tax revenue dropped even more sharply to IDR 153.3 trillion, down 24.7 percent.
According to Jakarta Globe, the significant fall in non-tax revenue is largely attributed to the government’s decision to stop channeling dividends from state-owned enterprises into the state budget as of March. These funds are now directed to Indonesia’s sovereign wealth fund, Danantara, to support long-term investment strategies.
Government spending reached IDR 806.2 trillion, or 22.3 percent of the full-year target, slightly below total revenue and contributing to the April surplus.
Sri Mulyani has previously said that the 2025 state budget is designed to run a deficit of IDR 616 trillion (around USD 37.4 billion), equivalent to 2.5 percent of GDP. The deficit is intended to support President Prabowo Subianto’s development agenda and help the country meet its 8 percent economic growth target over the next five years.
Source: Jakarta Globe
