Indonesia outlines three fiscal tactics to reinforce state budget

At the ANTARA Business Forum in Jakarta, Finance Minister Suahasil Nazara detailed a three-pronged fiscal plan for the APBN. The initial strategy seeks higher revenue by improving taxpayer compliance, widening the tax base and leveraging the Coretax system, which lets users obtain withholding tax certificates online. He also noted plans to align Indonesia’s tax framework with global digital-economy trends and diversify income sources.

The second strategy stresses higher spending quality, urging that funds be allocated to sectors that generate growth, welfare and national priorities, while enhancing policy harmony between central and regional governments. The final approach calls for innovative financing mechanisms to sustain an expansionary budget. Together, these measures are intended to keep the state budget robust amid evolving economic conditions.