Airlangga and Sri Mulyani clarify formation of National Revenue Agency

Published on 17/10/2024 at 07:26 GMT+7 Reading time

Coordinating Minister for the Economy Airlangga Hartarto and Minister of Finance Sri Mulyani Indrawati have addressed recent reports regarding the formation of the National Revenue Agency (BPN), rumored to be part of Prabowo Subianto’s upcoming administration.

Airlangga confirmed that Prabowo had raised the topic of the BPN during discussions about future cabinet positions. However, he noted that detailed plans for the agency’s development remain unclear.

He emphasized that, for now, the Ministry of Finance will remain intact, and there will be no immediate separation of the Directorate General of Taxation and the Directorate General of Customs and Excise to form the BPN.

"The structure is already clear, as explained by Finance Minister Sri Mulyani Indrawati," Airlangga said on Tuesday, October 15, 2024.

He added that Prabowo’s government plans to appoint an additional deputy minister in the Ministry of Finance, bringing the total number of deputy finance ministers to three, with one specifically focused on revenue management.

Sri Mulyani also confirmed that there are no plans to split the Ministry of Finance.

"Pak Prabowo mentioned that the Ministry of Finance will remain a single entity," she said following her meeting with Prabowo on Monday, October 14, 2024.

She clarified that their meeting did not include discussions about forming the BPN.

This indicates that the proposed BPN may not be established immediately or could face delays, given that separating key revenue functions from the Ministry of Finance would require changes to the State Finance Law.

Prabowo had previously expressed plans to enhance state revenue collection through the formation of the BPN, an idea he presented during his 2024 presidential campaign.

His campaign team remains optimistic about the initiative, with spokesperson Anggawira suggesting that the BPN would help plug revenue leaks.

However, the exact timing of the agency's creation remains uncertain.

"It is being prepared, but whether it will be established during this term depends on the resources available within the Ministry of Finance," Anggawira said on August 29, 2024.

The proposed BPN aims to centralize state revenue collection − covering taxes, non-tax revenues, and customs duties − under one agency. This initiative is part of Prabowo’s strategy to increase Indonesia’s tax-to-GDP ratio from 10 percent to 23 percent.

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