Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa said Friday that Indonesia has enough cash reserves to keep development programs on track despite slower tax collection this year.
“Even if tax revenues fall short of the target, there is no need to worry. We still have a significant excess budget balance from last year,” Sadewa told reporters at the Coordinating Ministry for Economic Affairs.
“Do not be afraid that the government does not have the money to build,” he added.
The excess budget balance from the 2025 State Budget stands at Rp457.5 trillion (about $27.8 billion).
Of that, Rp16 trillion ($973.8 million) has been allocated to fund the Merah Putih Cooperatives program, while Rp85.6 trillion ($5.2 billion) is earmarked to help cover the widening budget deficit.
Sadewa acknowledged tax revenue slowed in the first half of 2025, particularly in Value-Added Tax and Luxury Goods Sales Tax, due to weaker household spending and softer economic performance.
Still, he expressed optimism that revenues will rebound in the final quarter, supported by stimulus programs and a Rp200 trillion ($12.2 billion) capital injection into five major banks to boost the real sector.
“If all the programs are implemented as planned, I believe the targets will be achieved and economic growth will reach the levels we projected,” he said.
The Directorate General of Taxes reported state tax revenue as of July reached Rp990 trillion ($60.3 billion), down 5.29 percent from Rp1,045.3 trillion ($63.6 billion) a year earlier.
Despite the decline, Director General Bimo Wijayanto said tax revenue’s share of total state income rose 1.67 percent compared with the same period in 2024.
