Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia
Revenue seems to be the main fiscal risk and next year’s collection will be more challenging as there will be no penalty payment from tax amnesty program and commodity prices is expected to normalize. The government’s ability to generate revenue through reform is the key to address the fiscal risk going forward. However, the pace of tax reform should be carefully considered as a too-tight reform may discourage business appetite, yet a loose reform could result another shortfall episode. Thus, we hope this session could provide a more comprehensive picture on government’s tax reform plan while also addressing the equilibrium between reform and economic growth. Additionally, we also hope that the government could provide detail information about its spending priorities. This is especially considering a lower budget deficit target next year and also the government’s strategy to incorporate private investment to finance infrastructure projects.
Source: www.ibai.or.id