Indonesia's Non-Tax Revenue Experiences Significant Decline

Year-End PNBP Figures Released

The Indonesian Ministry of Finance reported that Non-Tax State Revenue (PNBP) reached Rp 444.9 trillion by year-end, representing 94.2% realization of the annual target. However, this figure marks a significant 14.8% year-on-year decline compared to Rp 522.5 trillion recorded during the same period last year.

Key Factors Behind the Decline

Wakil Menteri Keuangan Suahasil Nazara explained that the PNBP figure comprises several major components, with a notable contraction observed in oil and gas natural resource revenue. This particular segment recorded Rp 94 trillion, representing a 12.4% annual decline. The decrease was attributed to several factors:

1. Weakening ICP (Indonesian Crude Price): Lower global oil prices impacted revenue
2. Reduced gas production: Lower lifting levels contributed to decreased revenue
3. Offsetting factors:
   • Increased oil lifting compared to previous year
   • Rupiah depreciation against USD

Suahasil noted that while oil lifting showed improvement from the previous year, it remained below the target set in the State Budget (APBN).

Implications and Context

This decline in PNBP highlights the challenges faced in state revenue collection, particularly from natural resources. The Indonesian government continues to navigate the complexities of global commodity prices and production levels while managing fiscal policies.