Indonesia deploys three fiscal strategies to bolster state budget

Indonesian Finance Minister Suahasil Nazara announced that the government has devised three fiscal strategies to strengthen the state budget (APBN).

“Speaking of fiscal strategies, we still have three major approaches,” he said at the ANTARA Business Forum in Jakarta on Wednesday.

The first strategy focuses on boosting state revenue and raising the tax‑to‑GDP ratio by improving taxpayer compliance, broadening the tax base, and ensuring the reliability of the Coretax system.

Coretax, the Finance Ministry’s integrated tax administration platform, has received positive feedback from taxpayers, allowing them to access withholding tax certificates directly, the minister said.

“This model makes it more convenient for taxpayers to file returns quickly and efficiently,” Nazara noted.

He added that the government also aims to align Indonesia’s tax system with global developments and the digital economy while diversifying revenue sources.

The second strategy emphasizes improving spending quality.

Nazara stressed that efficiency must go beyond cutting or reallocating funds, with expenditures directed toward sectors that drive growth, welfare, and national priorities.

He also highlighted the need for stronger synergy between central and regional governments through policy harmonization, noting that both the APBN and regional budgets serve as instruments to deliver services and progress to the public.

The third strategy involves developing innovative financing schemes. Nazara explained that an expansionary budget requires increasingly creative approaches to financing.

“We are developing a range of innovative financing schemes as part of efforts to keep the APBN strong,” he said.

Translator: I. Silfia, Tegar Nurfitra
Editor: Aditya Eko Sigit Wicaksono
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