Illustration ( Rizal)
Illustration ( Rizal)

Omnibus Law Expected to Reduce Tax Revenue by Rp86 Trillion

English indonesian economy (en)
Eko Nordiansyah, Christopher Harindra • 05 Februari 2020 14:59
Jakarta: Indonesian Minister of Finance Sri Mulyani Indrawati believes that the application of the taxation omnibus law will reduce the country's tax revenue. It is estimated that tax revenue will decrease by IDR 86 trillion due to the application of tax incentives in the omnibus law.
"We have calculated the direct impact. If taxes are reduced, there are IDR 85 trillion to IDR 86 trillion that will not come in," she said at the Fairmont Hotel, Senayan, Jakarta on Wednesday, February 5, 2020.
However, Sri Mulyani is optimistic that the proposed omnibus law will help improve the tax base. Due to the implementation of the tax amnesty program, the government currently has a fairly good tax base.

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"There are indications that Indonesia actually has a tax base. There is tax data after tax amnesty and information exchange," she explained.
Nevertheless, Sri Mulyani believes that the budget deficit this year can be maintained by the government. This year, the government is targeting a State Budget (APBN) deficit of 1.76 percent.
She added that the government's strategy is to keep spending carefully. She revealed social safety nets to the community will continue to be run in order to maintain consumption so that economic growth is maintained.


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