TEMPO.CO, Jakarta – Finance Minister Sri Mulani Induvat said he is continuing to make the budget for government revenue and spending healthier. One of the things that has improved is government revenue, especially the tax sector. "Yesterday somebody criticized our low tax ratio, so we fixed it," said Sri Muyliani in Ritz-Carlton, Jakarta on Thursday, November 22, 2018.
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During the two years when he re-headed the Treasury, Sri Muyliani said the government had managed to raise government revenue by 19%. Noting that tax revenue growth could reach 17%. "In non-tax revenue, it may reach 19%."
Sri Muyliani said the Indonesian economy is recovering along with various external tensions. For example, economic growth managed to reach 5.17% in the third quarter of 2018, and inflation was depressed to around 3%.
Regarding the upcoming criticism of the government's implementation of government finances, Sri Muyliani said she was quite familiar. He also claims to tolerate these criticisms. "We were told to serve, but we also said we would increase the tax ratio, asked us to have a low deficit and a lot of spending, but we could not get indebted, my life was trained to do such things," he said. "I understand a lot of things.
Critics of the tax ratio were raised by the candidate-president Prabowo Subianto. He said Indonesia can study the proportion of tax revenue from Zambia in Africa. Because Zambia's tax ratio has reached 16%. In fact, African countries are often stopped, but there are actually countries that can be better than Indonesia.
"Therefore, it seems (the Indonesian people) have to go there (Zambia) and teach the government there how they can do good governance like them," said Prabobo.
He criticized the low level of Indonesian tax revenue. Compared to the New Order era, tax revenues are currently below 14% of gross domestic product. "In the New Age era, the tax ratio has reached 14% and may even reach 16% of GDP," he said.
The average Indonesian tax ratio by 2017 is still relatively small, only around 10-12% of GDP. Although the tax ratio in the Southeast Asia region is on average 15% of GDP.
Prabowo continued, at that time Indonesia's tax ratio also lags behind that of neighboring countries like Thailand and Malaysia, which have reached a tax rate ratio of 18%. In fact, Indonesia, according to Prabowo's records, has also lost the tax ratio from African countries.
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According to Prabowo, the tax ratio is still low because there is something wrong with the government's management of the economy. Moreover, this condition has occurred because the government has failed to achieve economic efficiency, especially those that are done by the bureaucracy in it.