TEMPO.CO, Jakarta - Indonesian Finance Minister Sri Mulyani Indrawati revealed that the country’s tax revenues until the end of August 2022 had exceeded the pre-pandemic level. Sri asserted that this condition was influenced by high commodity prices and ongoing economic recovery.

"It has far exceeded the realization before the pandemic in 2019," Sri said in an online press conference on Monday, September 26, 2022.

Sri detailed that tax revenue as of August 31, 2022, was recorded at Rp1,171.8 trillion, or 78.9 percent higher compared to the 2022 target of Rp1,485 trillion. Meanwhile, compared to August 2021, tax revenues increased by 58.1 percent to Rp741.3 trillion.

The state treasurer said that if it was compared from the realization in January-August 2019 which amounted to Rp802.5 trillion and in the same period in 2020 of Rp676.9 trillion, this year's tax revenue has already far exceeded the two periods.

According to Sri Mulyani, this was made possible by the increasing commodity prices, expansive economic growth, a low base of tax revenue during COVID-19 due to fiscal incentives, and the impact of the implementation of the Tax Harmonization Law.

Sri admitted that rising commodity prices are like a double-edged sword. On the one hand, it raises tax revenue. But on the other hand, it leads to high inflation.

"Food and energy are under pressure, so we use this state revenue for the community. We use this state revenue to protect the community," Sri Mulyani said.

ARRIJAL RACHMAN

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