JAKARTA. The Indonesian Ministry of National Development Planning (Bappenas) stated that the tax ratio of the Republic of Indonesia (RI) is one of the lowest in Southeast Asia.
As an illustration, in 2022 Indonesia's tax ratio is at the level of 10.41% of the Gross Domestic Product (GDP). Actually, this figure is an increase compared to the tax ratio in 2021 which amounted to 9.12% of GDP, and in 2020 which was 8.33% of GDP.
Quoting Bisnis Indonesia, referring to the data presentation of Bappenas, Indonesia's tax ratio level is still below Thailand, and in 2020 the country's tax ratio has reached 14.5% of GDP.
Meanwhile, Singapore in 2020 had a tax ratio of 12.9% of the GDP, and Malaysia at 10.9% of the GDP. Meanwhile, the average tax ratio worldwide is at 13.5% of GDP.
However, Indonesia's tax ratio is still above China's at 8.1% of the country's GDP.
Bappenas said that ideally, a country's tax ratio should be at the level of 15% of GDP or at least 12% of GDP. With such a tax ratio, it is ideal to leverage economic growth.
The explanation was conveyed by Minister of National Development Planning Suharso Monoarfa during the evaluation meeting of the 2020-2024 National Medium-Term Development Plan (RPJMN) with Commission XI, House of Representatives (DPR), Wednesday (5/4). (ASP/KEN)
