Indonesia's 30% tax revenue fall early this year sparks fiscal concerns

Fears of widening deficit, rupiah slump as Prabowo pushes costly programs

Indonesian Finance Minister Sri Mulyani Indrawati blamed falling commodity prices for Indonesia's recent poor tax collections, which fell 30% in January and February compared to the same period of 2024. © Reuters

ISMI DAMAYANTI

March 13, 2025 21:41 JST

JAKARTA - A 30% slump in Indonesia's tax revenue in the January-February period is fueling concerns over the country's fiscal health, with analysts warning of the risk of a widening deficit as President Prabowo Subianto pushes ambitious welfare programs.

The Ministry of Finance on Thursday reported 240 trillion rupiah ($14.6 billion) in tax revenue, including customs and excise, for the first two months of 2025 - which made up 75% of total state revenue. That was down from 320.5 trillion rupiah in the same period last year.