Revenue Statistics in Asian Countries is jointly undertaken by the OECD Centre for Tax Policy and Administration and the OECD Development Centre. It compiles comparable tax revenue statistics for Indonesia, Malaysia, the Philippines, Korea and Japan. The model is the OECD Revenue Statistics database which is a fundamental reference, backed by a well-established methodology, for OECD member countries. Extending the OECD methodology to Asian countries enables comparisons about tax levels and tax structures on a consistent basis, both among Asian economies and between OECD and Asian economies. A special feature in this edition provides country profiles on recent tax administration and related reforms in Indonesia, Malaysia and the Philippines.
Indonesia has a very good record of poverty reduction, having halved its incidence over the past two decades. Nevertheless, almost 30 million people still live below the national poverty line, mostly in rural areas and in certain provinces.
In Indonesia, the pressure on the environment that natural resource exploitation is creating should be addressed by increasing the share of gas and renewables in the energy mix, properly defining property rights and regulations regarding forest land, and implementing a positive implicit carbon price. More resources should be devoted to combating widespread illegal mining and deforestation.
Growth has slowed recently, and the backlog of required reforms is mounting. The government needs to increase revenues to finance higher spending on infrastructure, social security, education and health. Natural resources should be better managed.
The Indonesian economy has enjoyed strong and stable growth over the past decade and a half, leading to impressive reductions in poverty and major improvements in living standards. But challenges remain to continue to converge towards higher-income countries, according to the latest OECD Economic Survey of Indonesia.
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This country note from Going for Growth 2015 for Indonesia identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Angel Gurría, Secretary-General of the OECD congratulated the newly elected President of Indonesia, Joko Widodo, for taking a bold first step in his economic reform agenda by substantially cutting fuel subsidies.
While the outlook for many OECD countries remains subdued, Emerging Asia is set for healthy growth over the medium term. Annual GDP growth for the ASEAN -10, China and India is forecast to average 6.5% over 2015-19. Growth momentum remains robust in the 10 ASEAN countries, with economic growth averaging 5.6% over 2015-19.
This publication provides internationally comparable data on tax levels and tax structures for Indonesia and Malaysia. The model is the OECD Revenue Statistics database which is a fundamental reference, backed by a well-established methodology, for OECD member countries. By extending this OECD methodology to Asian countries, Revenue Statistics in Asian Countries enables meaningful cross-country comparisons about tax levels and structures not only between Asian economies, but also between them and their industrialised peers. Future editions will cover additional Asian countries.
Indonesia needs to address a wide range of structural bottlenecks in order to sustain strong medium-term growth.