Indonesia Records $2 Billion Budget Surplus in January

[Indos]

Indonesia Records $2 Billion Budget Surplus in January​

Sri Mulyani Indrawati, Indonesia Finance Minister



Tuesday, 22 February 2022 / 19:28 WIB

KONTAN.CO.ID - JAKARTA. Indonesia booked a $2 billion budget surplus in January as tax revenues soared amid a stronger economic recovery from the pandemic and high commodity prices, its finance minister said on Tuesday.

Sri Mulyani Indrawati said the surplus underscored Indonesia's sound fiscal position and reaffirmed other economic indicators showing the recovery in Southeast Asia's largest economy has continued this year, after GDP growth accelerated to 5% in the final quarter of 2021.

She expected GDP growth of within 4.8% to 5.5% range this year, versus 3.7% in 2021.

Read Also: Oil Hits Highest Since 2014 on Russia-Ukraine Escalation

The strong budget performance also meant the government was on track to reduce pandemic-era fiscal stimulus and reinstate a fiscal deficit ceiling of 3% of GDP next year, the minister said.

Overall revenues rose 54.9% on a yearly basis in January to 156 trillion rupiah ($10.86 billion), with tax collection up 65.6%, she said, adding the government also received additional income from a tax amnesty running from January to June.

The government spent 127.2 trillion rupiah last month, down 13% from a year ago, bringing the budget to a surplus of 28.9 trillion rupiah or 0.16% of GDP, Sri Mulyani said.

That compared with a deficit of 45.5 trillion rupiah in January 2021.

Read Also: Aluminium, Nickel Hit Multi-Year Peaks as Ukraine Tensions Intensify

The government repaid more bonds than it issued in January, resulting in a net negative issuance of 15.9 trillion rupiah, Sri Mulyani said, adding that it could cut this year's bond issuance plans further by using carry-over cash from last year.

The ministry has received parliamentary approval to sell 991.3 trillion rupiah of bonds this year, not including refinancing and buybacks, assuming a budget deficit of 4.85% of GDP throughout the year.

Sri Mulyani previously said the 2022 deficit could shrink closer to 4%. She did not offer a new forecast on Tuesday.

Indonesia Records $2 Billion Budget Surplus in January

Indonesia booked a $2 billion budget surplus in January as tax revenues soared amid a stronger economic recovery.

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This happen in the month of January when we even ban our coal export, Alhamdulillah

 

[Indos]

2022 Full of Challenges, Moody's: Indonesia's GDP Can Still Grow 5%

 

[Indos]

I will try to keep this thread running along the year of 2022, I expect our budget deficit for this year can be lower than 4 % of GDP inshaAllah despite all spending will keep being disbursed at 100 % rate based on the previous budget plan for 2022.

My prediction is our economy can grow at 5.5 percent this year where 5.6-5.7 % growth is still possible to achieve.

 

[Indos]

Indonesia sees first annual current account surplus in a decade​

By Gayatri Suroyo

• 2021 c/a surplus at 0.3% of GDP, first surplus since 2011
• C/a surplus shrinks in Q4 to 0.4% of GDP from 1.7% in Q3
• Q4 BoP -$0.8 bln, vs Q3's +$10.7 bln

JAKARTA, Feb 18 (Reuters) - Indonesia booked a current account surplus for the first time in a decade in 2021, data showed on Friday, but its balance of payments came under pressure in the final quarter due to bond market outflows and higher imports.

Bank Indonesia (BI) data showed Southeast Asia's largest economy recorded a $3.3 billion current account surplus last year, equivalent to 0.3% of gross domestic product, helped by a commodity price boom and strong demand from trade partners. It was Indonesia's first surplus since 2011.

The 2021 balance of payments registered a $13.5 billion surplus.

Persistent current account deficits and reliance on foreign portfolio inflows have previously contributed to the volatility of the rupiah , but analysts say last year's surplus should help steady the currency this year even as global liquidity tightens.

Signs of an acceleration in the U.S. Federal Reserve's monetary tightening have already spurred outflows from the Indonesian bond market, squeezing capital and financial accounts in the fourth quarter, data showed.


The current account surplus narrowed to $1.42 billion, or 0.4% of GDP, in the fourth quarter, from a $4.97 billion surplus, or 1.7% of GDP, in the previous three months, on rising imports and freight costs.

The fourth quarter also saw a deficit of $844 million in the balance of payments, compared with the July to September period's $10.69 billion surplus.

JP Morgan analyst Sin Ben Ong said fourth-quarter bond outflows of $4.9 billion were the second largest in more than a decade, but he noted that net foreign exchange reserves "exhibited remarkable resilience".

He said this would reduce BI's need to move its policy rate in lockstep with the Fed.

BI's latest outlook is for the current account to swing back to a deficit of between 1.1% to 1.9% of GDP in 2022, on moderating commodity prices and rising domestic demand as economic recovery from the COVID-19 pandemic strengthens.

Bank Mandiri's analyst Faisal Rachman predicted a 2.15% current account deficit and limited portfolio inflows this year, and that the balance of payments will likely post a smaller surplus than in 2021.

Indonesia sees first annual current account surplus in a decade

Indonesia booked a current account surplus for the first time in a decade in 2021, data showed on Friday, but its balance of payments came under pressure in the final quarter due to bond market outflows and higher imports.

www.reuters.com

 

[Song Hong]

Palm oil price rising like crazy. Today spot palm oil is 2000 USD.

 

[Indos]

Indonesia's foreign debt declined to US$413.6 bln in January 2022​

Illustration: The government's external debt declined from US$200.2 billion in December 2021 to US$199.3 billion in January 2022. (ANTARA/Pixabay/Artbaggage/am/uyu)

Jakarta (ANTARA) - Indonesia's foreign debt declined by 0.4 percent from US$415.3 billion in December 2021 to US$413.6 billion in January 2022, according to Bank Indonesia (BI).

Foreign debt of both the public sector, including the government and the central bank, as well as the private sector recorded a decline, Chief Executive Director of BI’s Communications Department Erwin Haryono informed in a statement issued here on Tuesday.

The government's external debt declined from US$200.2 billion in December 2021 to US$199.3 billion, continuing a downward trend that started in September the same year.

The government remains committed to maintaining its credibility by repaying the principal and interest on time as well as managing external debt prudently, Haryono said.

The government utilized 24.5 percent of the foreign debt for health services and social activities, 16.5 percent for education services, as well as 15.1 percent for government administration, defense, and mandatory social security.

Hence, the government’s external debt was relatively safe and controlled, in accordance with short-term refinancing risk, considering that 99.9 percent of the external debt had long-term tenors, Haryono informed.

Meanwhile, private external debt declined from US$206.1 billion in December 2021 to US$205.3 billion in January 2022.

Regarding the sector, the largest private external debt came from the financial and insurance services; the electricity, gas, steam/hot water and cold air supply sector; the manufacturing industry; as well as the mining sector.

Related news: Do not harbor negative perception about government debt: Nazara

Private foreign debt continued to be dominated by long-term debt, which accounted for 76.3 percent of the total private external debt.

According to Bank Indonesia, the ratio of Indonesia's external debt to gross domestic product (GDP) was around 34.1 percent in January 2022, a decline compared to December 2021, when it was recorded at 35 percent.

To maintain a healthy external debt structure, Bank Indonesia and the government are continuing to strengthen coordination in monitoring the utilization of external debt, managing the debt prudently, and minimizing debt risks, which could affect domestic economic stability.

Related news: BI's survey indicates sustained strong consumer optimism about economy


Reporter: Agatha Victoria, Uyu Liman
Editor: Rahmad Nasution
COPYRIGHT © ANTARA 2022

Indonesia's foreign debt declined to US$413.6 bln in January 2022

Indonesia's foreign debt declined by 0.4 percent from US$415.3 billion in December 2021 to US$413.6 billion in January 2022, according to Bank Indonesia ...

en.antaranews.com

 

[Indos]

Sales tax is increased into 11 % in April, from 10 %. The tax increase will help government to make the budget more healthy.

 

[hussain0216]

Great stuff

 

[Indos]

Great stuff

Yup the strong growth of tax revenues shows economic rebound, I hope this year we will have 5.5-5.7 percent growth rate with 3.7 % of GDP budget deficit and stable currency. So far the situation is good and covid infection has come down below 5000 per-day. AlhamduliLLAH

This healthy financial condition is important for our local defense industry development, particularly for the most expensive defense program in our history which is currently still going on, KF21/IFX program.

 

[Indos]

Sales tax is increased into 11 % in April, from 10 %. The tax increase will help government to make the budget more healthy.

Arsyad Rasyid, KADIN (Indonesia Businesses Association) Chairmant and also majority stake holder of Indika Energy support the tax sales increase. Interesting explanation coming from him who said sales tax in Indonesia is considered as smaller than many countries.

 

[Indos]

AlhamduliLLAH, until the end of February, the budget is still in surplus about 0.11 percent of GDP while the spending is relatively similar with Jan-Feb 2021 period and less issuance on government bond as well. It is mainly due to increase on tax collection during the months of January-February 2022.

Breakdown and analysis by Indonesian Finance Minister, January-February 2022 budget

 

[Indos]

Government officially increases VAT rate to 11 percent​

3 hours ago

Screenshot - Minister of Finance (Menkeu) Sri Mulyani Indrawati at the press conference of the APBN KiTA in Jakarta, Monday (March 28, 2022). ANTARA/Youtube Ministry of Finance/pri.


Jakarta (ANTARA) - Finance Ministry officially raised the value-added tax (VAT) rate, from 10 to 11 percent, starting April 1, as per mandate of Article 7, Law Number 7 of 2021 on Harmonization of Tax Regulations (UU HPP).

"This policy is an inseparable part of tax reform and fiscal consolidation as the foundation of a more equitable, optimal, and sustainable tax system," according to the Ministry of Finance's official statement in Jakarta on Friday.

The Ministry of Finance detailed certain goods and services provided with VAT-free facilities covering basic needs, such as rice, grain, corn, sago, soybeans, salt, meat, eggs, milk, fruits, vegetables, and consumable sugar.

The others are health services, education services, social services, insurance services, financial services, public transportation services, and labor services.

Furthermore, VAT-free facilities are provided for vaccines, textbooks, holy books, clean water that includes the cost of connection or installation, and the cost of fixed load and electricity, except for households, with a power consumption of more than 6,600 VA.

Simple flats, low-cost apartment compound (rusunami), hospitals, low-cost houses, construction services for houses of worship and construction services for national disasters also get VAT-free facilities.

VAT-free facilities are also provided for machinery, marine fishery products, livestock, seeds, animal feed, fish feed, feed ingredients, rattan leather and raw bark, and raw material for silver handicrafts.

Petroleum, natural gas or gas through pipelines, LNG and CNG as well as geothermal, gold bullion and granule gold as well as weapons or defense equipment and aerial photography equipment are also granted VAT-free facilities.

Meanwhile, goods and services that are not subject to VAT include goods that are objects of local tax, specifically food and beverages served at hotels, restaurants, food stalls, and others.

Furthermore, services that are objects of local taxation are services for providing parking spaces, arts and entertainment services, hospitality services, and catering or catering services.

Money, gold bars for the purpose of state foreign exchange reserves, securities as well as religious services and services provided by the government are also not subject to VAT.

This VAT rate adjustment was also accompanied by a decrease in the rate of income tax (PPh) for individuals, with income up to Rp60 million, from 15 percent to five percent.

The government also exempts taxes for MSME actors, with a turnover of up to Rp500 million, provides final VAT facilities with a certain smaller amount, specifically one percent, two percent, or three percent.

"Restitution service of VAT, which is accelerated up to Rp5 billion, will also continue to be provided," according to the Ministry of Finance.

Related news: Draft state budget discussion to cover sweetened beverage tax: govt

The government will continue and strengthen its support in the form of social protection to maintain the people's purchasing power as well as national economic conditions through the state budget.

The government is also committed to continuing to formulate balanced policies to support economic recovery and help vulnerable and disadvantaged groups.

This effort also aims to support the business world, especially small and medium groups, while still paying attention to the health of state finances.

The Directorate General of Taxes (DJP) has also adjusted tax service applications, such as Desktop e-Faktur, Host to Host e-Faktur, Web e-Faktur, VAT Refund, and e-Nofa Online.

Related news: Carbon tax imposition put off till July 2022: minister
Reporter: Astrid F, Azis Kurmala
Editor: Rahmad Nasution
COPYRIGHT © ANTARA 2022

Government officially increases VAT rate to 11 percent

Finance Ministry officially raised the value-added tax (VAT) rate, from 10 to 11 percent, starting April 1, as per mandate of Article 7, Law Number 7 of 2021 ...

en.antaranews.com

 

[Indos]

Energy Minister signals more price hikes for fuel, electricity​

Vincent Fabian Thomas (The Jakarta Post)
PREMIUM
Jakarta ● Thu, April 14, 2022

The Energy and Mineral Resources Ministry has revealed plans to raise the prices of subsidized energy commodities to minimize fiscal strains amid surging international oil prices induced by the Russian invasion on Ukraine.

Energy Minister Arifin Tasrif said on Wednesday that the “adjustments” would apply to Pertalite gasoline, Solar diesel, kerosene and 3-kilogram liquefied petroleum gas (LPG) cylinders. These subsidized fuels are widely used by lower-income homes and businesses. “We will keep an eye on the developments in the geopolitical conflict.

If it keeps going on, it could trigger further hikes in oil prices, which the state budget may not be able to cover. Therefore, we need to recalculate prices again,” Arifin told lawmakers.

Energy Minister signals more price hikes for fuel, electricity

The price adjustments are part of the government's strategy to reduce fiscal pressures as global commodity prices surge.

www.thejakartapost.com

 

[Indos]

ASIA ECONOMY

Indonesia's economy maintains steady growth momentum in the first quarter​

PUBLISHED MON, MAY 9 202212:58 AM EDTUPDATED 3 MIN AGO

• Indonesia's economy grew for the fourth straight quarter between January and March as Covid-19 restrictions continued to be relaxed, statistics bureau data showed on Monday.
• Gross domestic product in Southeast Asia's largest economy expanded 5.01% in the first quarter from the same period last year, compared with 5.02% in the October-December period in 2021.

Morning commuters at a pedestrian crossing in the central business district of Jakarta, Indonesia, on Nov. 5, 2021. Indonesia’s economy grew for the fourth straight quarter between January and March as Covid-19 restrictions continued to be relaxed, statistics bureau data showed on Monday. Dimas Ardian | Bloomberg | Getty Images


An historic rise in commodity prices and relaxation of Covid-19 curbs helped Indonesia's economy grow for a fourth straight quarter between January and March, official data showed on Monday.

Southeast Asia's largest economy grew 5.01% in January-March from the same period last year, compared with 5.02% growth in October-December. A median forecast by 19 analysts polled by Reuters had expected 5.00% growth in the first quarter.


Growth in the January-March period was supported by recovery in consumption, investment and exports. Surging prices of global commodities such as coal, palm oil and nickel, also contributed to record high trade surpluses for Indonesia, a major supplier of these resources.

Covid-19 restrictions imposed earlier in the year, which have now been lifted, led to a strong pick-up in Indonesia's economic activities, Margo Yuwono, head of Indonesia's statistics bureau, told a news conference.

"Household consumption has improved, even for tertiary spending such as travels," he added.

But President Joko Widodo has warned of inflation risks stemming from rising global fuel and food prices and supply chain disruptions made worse by the war in Ukraine.

Analysts also cited geopolitical concerns as factors that could hamper growth.

"Several global risks that will affect the national economic recovery include geopolitical risks, China's economic slowdown and rising global inflation that has prompted tightening of global monetary policy," Josua Pardede, an economist at Bank Permata, said.

Indonesia's central bank last month lowered its economic growth outlook for the year to 4.5%-5.3%, from 4.7%-5.5% previously, citing slower global growth and disruptions to trade.

Bank Indonesia (BI), which has pledged to keep interest rates at record lows until it sees signs of pressure on core inflation, intends to review its monetary policy normalization plan in May to June, and assess any risks to the inflation outlook if the government changes energy prices and subsidies.

It had previously said interest rate levels would only be reviewed in the third quarter.

On a quarterly, non-seasonally adjusted basis, the economy contracted 0.96%, compared with 1.06% growth in October-December and forecasts of a 0.89% decline.

Indonesia's economy maintains steady growth momentum in the first quarter

Indonesia's economy grew for the fourth straight quarter between January and March as Covid restrictions are relaxed, statistics bureau data showed on Monday.

www.cnbc.com

 

[Indos]

AlhamduliLLAH

39 billion USD expected additional state revenue for 2022 state budget
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Sri Mulyani estimates that there will be an additional state revenue of Rp420.1 trillion

Thursday, 19 May 2022 13:05 WIB

Sri Mulyani perkirakan ada tambahan pendapatan negara Rp420,1 triliun

Menteri Keuangan (Menkeu) Sri Mulyani memperkirakan terdapat penambahan penerimaan negara sebesar Rp420,1 triliun pada Anggaran Pendapatan dan Belanja Negara ...

www.antaranews.com