Expert Staff to the Minister of Finance for Tax Compliance, Yon Arsal, said that the decline in commodity prices, including the price of Crude Palm Oil (CPO), which is the mainstay of Indonesian exports, will be a challenge for 2023 tax revenues. "In 2022, commodity prices, including CPO, will increase quite high, which will provide benefits for tax revenues. This will not be repeated in 2023," he said at the International Tax Conference monitored in Jakarta, Wednesday. In 2023, the Directorate General of Taxes estimates that tax revenue will reach IDR 1,718 trillion or only grow by around 5 percent on an annual basis.

This tax revenue growth has weakened from 25 percent on an annual basis in 2022 with a total tax revenue estimated at IDR 1,608.1 trillion.

In addition to the decline in commodity prices, high tax revenues in 2022 are also due to the Voluntary Disclosure Program (PPS) with the achievement of taxes collected around IDR 60 trillion.

"This program will not be held again in 2023, so the revenue from this program will disappear in 2023," he said.

Unstable global economic and political conditions, such as the war in Ukraine, conflict tendencies between China and Taiwan, as well as high inflation in various countries, are also at risk of weakening Indonesia's tax revenues in 2023.

“At the same time, global economic moderation can limit the capacity of Indonesia and industries in Indonesia to export products. This has been seen in various sectors, especially textiles and textile products (TPT)," he said.

This is because developed countries such as Europe, which are usually the market share for Indonesian textile products, are also experiencing an economic downturn, so that country's demand for non-food products has the potential to weaken.

"Many textile industry players are laying off because of weak demand, especially from developed countries, because countries like Europe are also in a crisis with high inflation in energy and food," he said.