Reaching IDR 1,869.2 trillion, The 2023 Tax Revenue Realization Increased by 8.9%

JAKARTA. The realization of provisional tax revenue during January-December 2023 was recorded at IDR 1,869.2 trillion or an increase of 8.9% compared to tax revenue for the same period in 2022.

This growth rate is indeed much lower when compared to the growth of tax revenue in 2022 against 2021 which was recorded at 34.3%.

The government argued that this condition was due to a significant decline in commodity prices, as well as the non-recurrence of the Voluntary Disclosure Program (VDP) policy as occurred in 2022.

Nevertheless, the realization of tax revenue was able to exceed the target set by the government, both the target in the State Budget (APBN) and the outlook contained in Presidential Regulation (Perpres) Number 75 of 2023.

Compared to the State Budget target, the realization reached 108.8%. While compared to the outlook or Presidential Regulation Number 75 Year 2023, the realization reached 102.8%.

Therefore, in three consecutive years, the government has succeeded in achieving the targets set. As an illustration, in 2021 the achievement of tax revenue was recorded at 104%, and in 2022 at 115.6%.

In detail, the realization of tax revenue in 2023 consists of, first, non-oil and gas income tax (PPh nonmigas) revenue of IDR 993 trillion or a growth of 7.9%.

Then the realization of Value Added Tax (VAT) and Sales Tax on Luxury Goods (STLG) revenues of 764.3 trillion or an increase of 11.2%. 

Then, the revenue from Land and Building Tax and other taxes amounted to IDR 43.1 trillion or increased by 39.2%. Then, the realization of oil and gas income tax (PPh migas) revenue was recorded at IDR 68.8 trillion or decreased by 11.6%. 

Sectoral Performance

Sectorally, tax revenue is still dominated by the manufacturing industry and trade, with contributions of 26.9% and 24.4%. However, the performance of the two sectors declined compared to 2022. This can be seen from their slowing growth.

Meanwhile, several other sectors experienced strengthening, such as trade services with a contribution of 4.4%, which was able to grow 25% higher than last year, which only grew 7%. This was driven by increased credit distribution and interest.

Then, the transport and storage sector also grew higher than the previous year. In 2023 tax revenue from this sector rose 29.9%, while in 2022 it only rose 24.6%. This is in line with the increasing mobility of the community, tourist trips, and sea freight activities for goods.

Likewise, the construction and real estate sector in 2023 rose 20.4% after contracting -13.8% last year. This was supported by increased construction activities and real estate sales.

Other sectors that also grew positively were information and communication and corporate services, which rose 12% and 24.2% respectively. This was higher than last year's growth of only 7.1% and 17.2%, respectively. (ASP/KEN)