Indonesia Considers New State Revenue Ministry to Boost Income and Investment
- The Indonesian government is exploring the idea of establishing a new ministry focused on state revenues.
- Discussions about the State Revenue Ministry occurred before President Prabowo's inauguration on October 20.
- Hashim stated that the plans for the ministry are still active.
Indonesia Considers New State Revenue Ministry
The Indonesian government is exploring the idea of establishing a new ministry focused on state revenues. Hashim Djojohadikusumo, brother of President Prabowo Subianto, confirmed this proposal.
Discussions about the State Revenue Ministry occurred before President Prabowo’s inauguration on October 20. However, it was not included in the newly announced cabinet, which expanded from 34 to over 40 ministries and agencies.
Hashim stated that the plans for the ministry are still active. He suggested Anggito Abimanyu, the current vice finance minister, as the likely leader of this new ministry.
Currently, the Ministry of Finance manages state revenues through its Taxation and Customs and Excise Directorates. Hashim highlighted the necessity for a separate ministry to focus solely on revenue collection and discovering new income sources.
During a meeting at the Mulia Hotel in Jakarta, Hashim said, “Anggito Abimanyu will be appointed as the state revenue minister. His current role as vice finance minister is only temporary.”
The 2025 budget aims for Rp 3,005 trillion in revenues, mainly from taxes and customs duties.
Exploring New Revenue Streams
Hashim, as the special envoy for energy and climate, mentioned ways to boost revenues through government royalties and other untapped sectors. He expressed optimism about attracting foreign investments while improving tax and customs systems.
Anggito Abimanyu proposed utilizing the activity from illegal international online betting platforms to generate state income. Despite gambling being illegal in Indonesia, he noted the potential for tax collection from these activities.
He emphasized the need for the Taxation Directorate to find innovative methods to tap into the underground economy’s financial resources.
This proposed ministry could lead to a more focused approach on revenue generation, impacting Indonesia’s financial landscape positively.