Amid Tariff War Tensions, Sri Mulyani Highlights Tax Revenue Improvement

JAKARTA – Minister of Finance Sri Mulyani revealed that tax revenue performance in March 2025 has shown improvement. In the previous months, January and February, tax revenue had contracted, recording growth rates of -13% and -9%, respectively.

She made this statement while addressing the government's response and policies regarding the escalating tariff war alongside several parties, including President Prabowo Subianto.

“As we know, the tariff war erupted after the President of the United States imposed reciprocal tariffs on several countries, including Indonesia,” she said.

Tax Revenue Returns to Positive Growth

According to Sri Mulyani, in March, tax revenue grew by 9.1%. Cumulatively, from January to March 2025, gross tax revenue reached IDR 469.91 trillion.

“I want to assure you that tax revenue remains on track,” said Sri Mulyani on Tuesday (8/4) in Jakarta.

She added that this improvement in tax revenue will have a positive impact on the stability of the State Budget (APBN).

Dispelling Concerns

As such, the turnaround in tax revenue performance could help restore public confidence in the state of the 2025 State Budget (APBN), especially since recent reports have painted an unfavorable picture of the fiscal outlook over the past two months.

“In the past month, news headlines have suggested that the APBN is unsustainable, not prudent, and heading for disaster,” Sri Mulyani emphasized.

She assured that, despite the various programs included in the 2025 State Budget, the government has designed it to remain prudent. Furthermore, the government will continue to closely monitor the allocation and use of funds. (ASP/KEN)