JAKARTA — Indonesia is planning to establish a Ministry of State Revenue to centralize and enhance the country’s revenue collection efforts, Hashim Djojohadikusumo, a close advisor to President Prabowo Subianto, announced on Sunday, according to Detik.com.

The proposed ministry will oversee state revenues, including taxes, excises, and mining royalties, Hashim said during a meeting of the Indonesian Chamber of Commerce and Industry. However, he did not specify a timeline for its creation.

Hashim indicated that Deputy Finance Minister Anggito Abimanyu is expected to lead the new ministry. Abimanyu, an experienced economist and former head of the Fiscal Policy Agency, is seen as well-positioned to guide the initiative.

The plan aligns with President Prabowo’s campaign pledge to significantly boost Indonesia’s tax revenue.

He aims to increase tax revenue to 18% of gross domestic product (GDP) from the current 10%, a move that could generate an additional $100 billion annually.

The creation of the Ministry of State Revenue reflects Prabowo’s broader strategy to improve fiscal management by centralizing revenue collection across various streams, including taxes, non-tax revenues, and customs duties. This reform is intended to optimize state revenue, address inefficiencies, and meet growing fiscal demands. — Agencies