Page 2 - Newsletter (Realization of 2019 State Budget & Indonesia’s Position in MLI)

DDTC Newsletter Vol.03 | No.01 I January 2020 Page 2 of 7

Realization of 2019 State Budget & Indonesia's
Position in MLI

Realization of the 2019 State Budget In contrast, as of the end of December 2019, excise
revenue reached Rp172.3 trillion or increased by 8%
The sluggish global economy has impacted on Indonesia’s from the previous year. This achievement exceeded the
revenues, in particular, from the taxation sector. This was target of 165.5 trillion. Furthermore, in terms of customs,
conveyed by Minister of Finance, Sri Mulyani Indrawati, in until the end of 2019, the revenue realization from import
a press conference related to the realization of the 2019 duties totalled Rp37.4 trillion. Such an amount is still
State Budget on Tuesday, 7 January 2020. Nevertheless, below the 2019 State Budget target of Rp. 38.9 trillion
the implementation of the 2019 State Budget as one of and contracted by 4.27%.
the instruments to stimulate the economy is considered
fairly satisfactory. Further, this year’s revenue realization from export
duties amounted to Rp3.4 trillion. The total export duty
The Ministry of Finance stated that the realization of was below the 2019 State Budget target of Rp.4.4 trillion
state revenues in 2019 amounted to Rp1,957.2 trillion or and contracted 48.5% from the same period last year.
90.4% of the 2019 State Budget target which was set at In total, revenue from customs and excise amounted to
Rp2,165.1 trillion. This means that the realization of state Rp.213.1 trillion and this realization exceeded the target
revenues in 2019 experienced a growth of 0.7% (yoy) set at Rp. 208.8 trillion.
compared to that of the 2018 State Budget of Rp1,943.77
In addition, the realization of state expenditure reached
trillion.
Rp2,310.2 trillion or grew by 4.4% (yoy) from the
The realization of state revenues in 2019 consisted of 2018 realization of Rp2,213.1 trillion. This expenditure
taxation revenues amounting to Rp1,545.3 trillion, non- realization comprised two sectors, i.e. central government
tax state revenues (penerimaan negara bukan pajak/ expenditure of Rp1,498.9 trillion or rose by 3% from the
PNBP) of Rp405 trillion and grants of Rp6.8 trillion. In 2018 realization of Rp1,455.3 trillion and transfers to
further detail, the realization of tax revenue in 2019 regions and village funds, of which the realization added
reached Rp1,545.3 trillion or 86.5% of the target of up to Rp811.3 trillion or 7.1% higher than the 2018
Rp1,786.4 trillion. This realization was lower than that of realization of Rp757.8 trillion.
2018 which reached Rp1,518.8 trillion or 93.86% of the
As evident in the 2019 State Budget, the sluggish
target of Rp1,618.1 trillion.
performance revenue amidst considerable state
Table 1 - The Target and Realization of 2018 dan 2019 State Budget

2018 (AUDITED) 2019 (UNAUDITED)
Description
(trilion Rupiah) Target Realization Realization Target Realization Realization
against Target against Target
(%) (%)

State Revenue 1,894.7 1,943.67 102.58 2.165,1 1,957.2 90,4

Taxation 1,618.1 1,518.78 93.86 1.786,4 1,545.3 86.5
Customs and Excise 194.10 205.47 105.9 208,8 213.1 102.0

PNBP 275.4 403.32 148.61 378,3 405.0 107.1

Grants 1.2 15,56 1,300.47 0,4 6.8 1,560.7
State Expenditure 2,220.7 2,123.11 99.66 2,461.1 2,310.2 93.9

Central
1,454.5 1.455,32 100,06 1.634,3 1.498,9 91.7
government
Transfer to Regions
766.2 757.79 98.91 826.8 811.3 98.1
& Village Funds
(Deficit)/Surplus (325.9) (269.44) 82.67 (296.0) (353.0) 119.3

% against GDP (2.19) (1.82) (1.84) (2.20)
Budget Financing 325.9 305 93.79 296.0 399.5 134.9

Source: Ministry of Finance of the Republic of Indonesia Press Conference (7 January 2020).