Tax Revenue Sluggish as of April 2025

JAKARTA. The performance of state tax revenue up to April 2025 shows a significant slowdown. In the fourth month of the year, tax collections reached only IDR 557.1 trillion, a 10.8% decline compared to the same period last year, which recorded IDR 624.2 trillion.

According to cnbcindonesia.com, this realization represents just 25.4% of the 2025 State Budget (APBN) tax revenue target, which has been set at IDR 2,189.3 trillion.

“Tax revenue has reached IDR 557.1 trillion, meaning 25.4% of the target,” said Minister of Finance Sri Mulyani during a State Budget press conference at the Ministry of Finance building in Jakarta, Friday (May 23).

The decline indicates that the main engine of state revenue, taxes, has not yet been operating optimally. Nevertheless, Sri Mulyani highlighted an improvement in tax performance in April compared to March 2025, partly driven by collections from Corporate Income Tax (PPh Badan), Domestic VAT, and Import VAT.

“So, I hope everyone is beginning to acknowledge this new reality, so we don't fall back. And we will always be transparent and detailed,” she emphasized.

Based on State Budget data, gross tax revenue had reached IDR 733.2 trillion as of April. In April alone, tax revenue stood at IDR 266.2 trillion, an increase from the previous month's IDR 168.1 trillion. The average monthly tax revenue during the first three months of this year reached IDR 217.2 trillion, higher than last year’s average of IDR 202.5 trillion. However, this increase has not been sufficient to offset the year on year pressure.

State Budget Remains in Surplus

Meanwhile, despite sluggish tax revenue, the 2025 State Budget (APBN) still recorded a slight surplus of IDR 4.3 trillion, or 0.02% of Gross Domestic Product (GDP). State revenue reached IDR 810.5 trillion, slightly higher than state expenditure, which stood at IDR 806.2 trillion.

“This shows that amid a transitional period, the 2025 State Budget remains capable of functioning optimally in supporting the implementation of the government’s priority programs that are felt by the people,” said Minister of Finance Sri Mulyani during a plenary session of the House of Representatives (DPR RI) on Tuesday (20/5), as quoted by kontan.co.id.

Nevertheless, overall state revenue also experienced a contraction of 12.4% compared to the same period last year, which was IDR 719.9 trillion.

This trend of sluggish tax receipts signals that the government needs to anticipate various challenges in maintaining a healthy fiscal posture amid ongoing economic uncertainty. (KEN)