{
    "success": true,
    "data": {
        "id": 1621078,
        "msgid": "parliamentary-finance-committee-urges-tax-optimisation-to-strengthen-fiscal-position-1773766401",
        "date": "2026-03-17 22:51:45",
        "title": "Parliamentary Finance Committee Urges Tax Optimisation to Strengthen Fiscal Position",
        "author": "Satria K Yudha",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Finance",
        "summary": "A parliamentary finance committee member Eric Hermawan has called for enhanced fiscal management to address the widening budget deficit in 2025, which reached Rp695.1 trillion (2.92% of GDP), exceeding the legal threshold of 3%. Hermawan emphasised that optimising tax revenue collection and improving budget allocation efficiency are critical to maintaining fiscal stability whilst supporting inclusive economic growth.",
        "content": "<p>JAKARTA \u2013 Parliamentary Finance Commission (Komisi XI) member Eric\nHermawan has assessed that the widening 2025 state budget deficit\nsignals the need for strengthened fiscal management going forward. This\nevaluation is considered important to maintain equilibrium between state\nrevenue and expenditure.<\/p>\n<p>Eric reported that state revenue realisation reached Rp2.756.3\ntrillion or 91.7 per cent of the target of Rp3.005.1 trillion, whilst\nstate spending remained elevated at Rp3.451.4 trillion. This situation\ndrove the deficit to reach Rp695.1 trillion or approximately 2.92 per\ncent of GDP, higher than the assumed 2.78 per cent.<\/p>\n<p>\u201cThis condition has caused the deficit to widen to Rp695.1 trillion\nor approximately 2.92 per cent of GDP, approaching the 3 per cent\nthreshold stipulated by law,\u201d said Eric.<\/p>\n<p>Eric explained that optimising tax revenue collection has become key\nto strengthening fiscal structure. Tax revenue realisation was recorded\nat Rp2.217.9 trillion or 89.0 per cent of target, meaning there remains\nroom for improvement in strengthening the tax base and compliance.<\/p>\n<p>\u201cAlthough Non-Tax State Revenue (PNBP) reached 104 per cent of target\nor Rp534.1 trillion, this surplus is relatively small and unable to\ncover the significant gap in the tax sector,\u201d said Eric.<\/p>\n<p>On the expenditure side, Eric sees a need to improve the quality of\nbudget allocation to be more effective in driving economic growth.\nMinistry and institutional expenditure was recorded at Rp1.500.4\ntrillion or 129.3 per cent of target, whilst non-ministry\/institutional\nexpenditure realised Rp1.102.0 trillion or 71.5 per cent.<\/p>\n<p>\u201cThis imbalance not only reflects budget control issues, but also has\nthe potential to reduce the effectiveness of spending in driving\ninclusive economic growth,\u201d said Eric.<\/p>\n<p>Eric also highlighted the primary balance shift from a targeted\nsurplus of Rp63.3 trillion to a deficit of Rp180.7 trillion. According\nto Eric, this condition serves as a reminder of the importance of\nmaintaining quality financing to remain productive.<\/p>\n<p>\u201cOn the other hand, budget financing also increased significantly to\nRp744.0 trillion or 120.8 per cent of target, which has implications for\nrising debt risk and future financing costs,\u201d said Eric.<\/p>\n<p>To this end, Eric advocates measured fiscal consolidation in 2026\nwith a target state revenue of Rp3.153.6 trillion and a deficit of 2.68\nper cent of GDP. This effort needs to be balanced with policies that\nmaintain economic stability whilst protecting society.<\/p>\n<p>\u201cThe direction of fiscal policy going forward should emphasise\nbalance between budgetary discipline, macroeconomic stability, and\nprotection for society,\u201d said Eric.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/parliamentary-finance-committee-urges-tax-optimisation-to-strengthen-fiscal-position-1773766401",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}