Mahfud's Pessimism Response To The Idea Of Gibran Raising 23 Percent State Revenue, TKN: He Doesn't Know The Sources

Left-right: Muhaimin Iskandar, Gibran Rakabuming Raka and Mahfud MD in the 2024 Cawapres Debate at JCC Jakarta, Friday 22 December. (Bambang-VOI)

JAKARTA - Member of the TKN Expert Council Prabowo-Gibran, Drajad Wibowo explained the vision and mission of the presidential and vice presidential candidate pair number 2 Prabowo Subianto-Gibran Rakabuming Raka in increasing state revenue, one of which is by establishing a State Revenue Agency (BPN) under the President in order to increase the ratio of gross domestic product (GDP) to 23 percent.

Drajad's explanation at the same time denied the question of Vice Presidential Candidate number 3, Mahfud MD, in a debate session regarding how the Prabowo-Gibran pair increased the tax ratio by 23 percent. He also emphasized Mahfud's statement was wrong, that the 23 percent figure in vision and mission is not the tax ratio, but the revenue ratio from GDP.

According to Drajad, 23 percent of state revenues are realistic figures, because state income does not only cover taxes but excise, Non-Tax State Revenue (PNBP) such as exports and imports or tax collections on expenditures sourced from the APBN. Therefore, what Mahfud questioned was considered to be wrong with his head of state.

"During the debate, Mr. Mahfud asked Mas Gibran about the formation of the State Revenue Agency and the target tax ratio or the 23 percent tax ratio from Prabowo-Gibran was calculated from GDP or something, and Mr. Mahfud said that pessimism of the figure could be achieved," said Drajad in Jakarta, Friday, December 29.

"So what is included is not only tax revenues, but also excise revenues, non-tax state revenues (PNBP) and other revenues such as grants," he continued.

Drajad underlined, as of 2021, the position of the ratio of state revenues to Indonesia's GDP is only 11.8 percent. This figure is far below our neighboring countries such as Cambodia, Thailand and Vietnam. Where the three countries have a ratio of state revenues to GDP above 18 percent. Among neighboring countries, only Malaysia has a ratio of state revenues to GDP of 15.1 percent.

"As an economist, I see that the target still makes sense, provided that the sources of revenue that we have not been involved in so far can be taken," said the PAN politician.

The 23 percent ratio of state revenues to GDP is also listed officially in the vision and mission of Prabowo-Gibran which was handed over to the KPU. In the vision and mission, it is stated that to achieve the target of 23 percent, the state requires concrete breakthroughs in an effort to increase state revenues from within the country, one of which is through the plan to establish a BPN.

In addition, Drajad said, one of the sources of funding to realize the Prabowo-Gibran program came from the revision of regulations. According to him, there are regulations in Indonesia that if one of the articles is changed, the state can generate revenue of more than Rp. 100 trillion.

"For example, other tax and legal cases that have been inkracht and there are still several other sources of income. One of them I have revealed, with only one change of regulation, funds of Rp. 116.4 trillion can be utilized. It is greater than the Rp. 104 trillion that I have mentioned before," said Drajad.

"If Mr. Mahfud is pessimistic, maybe because he doesn't know the sources yet. If he already knows, I'm sure he will be optimistic like me," he concluded.