Indonesia’s tax revenues decline amid falling commodity prices

Indonesia’s tax revenues for the first two months of 2025 faced a setback due to falling global prices of key commodities, including coal, nickel, and crude oil, alongside adjustments in income and value-added tax (VAT) collection, its deputy finance minister said on Thursday.

Despite the downturn, Anggito Abimanyu expressed optimism during a press conference, citing encouraging economic indicators such as an improving Purchasing Managers’ Index (PMI), as well as rising motorcycle and car sales. These factors suggest that VAT revenues are likely to recover in the coming months, signalling resilience in domestic consumption and overall economic activity.

Attribution: Reuters

Subediting: Y.Yasser