Page 19 - Warta Bea Cukai Edisi Oktober 2018

MAIN REPORT

Securing Indonesia’s Economy Through

Current Account Deficit Control

Current global economy condition has caused International Monetary Fund just recently
highly dynamic activities of current balance stated that 1,5% of current account deficit of
account and currency from many countries, Indonesia’s State Budget is considered normal.
including Indonesia. Current account deficit However, current account deficit is still going to
in Indonesia during the first semester of 2018 cause liability to creditor country if it’s not used
has reached USD 13.5 billion or 2,6% of Gross for funding development that will earn revenue
Domestic Product. One of the factors is the in the future.
import growth has exceeded the export growth.
Given the current account deficit percentage
In the last four years, it is known that current towards State Budget keeps getting higher,
account deficit in Indonesia has widened to the government have considered the need
the highest level. Dollar dependency and lack to control the deficit to protect Indonesia’s
of foreign capital flow, as well as lack of raw fundamental economy. Therefore, the
material for production have made Indonesia government have stipulated several policies
has been impacted with economic sentiment. and reviewed infrastructure projects specifically
Bank of Indonesia and the government have national strategic project, Biodiesel (B-20) usage
made several policies to decrease its economic implementation in order to decrease diesel fuel
dependency towards dollar currency. import, as well as reviewed policy of income
tax on imported goods for boosting domestic
Current balance account measures the activity products.
of international trade of Indonesia. It also
determines goods trade, service trade, assets The government has also reviewed the goods
and production factors revenue, collected from classified in the Minister of Finance Regulations
assets and workforce, and money transfer. number PMK 132/PMK.010/2015, PMK 06/
Therefore, the country that becomes a debtor, PMK.010/2017, and PMK 34/PMK.010/2017.
which receives net loans from other countries, The review process has been conducted,
will record the current account deficit. It will together with Coordinating Minister for
need capital resources and financial flow to Economic Affairs, Minister of Finance, Minister
cover the deficit. of Industry, Minister of Trade, and Presidential
Staff Office, by considering consumer goods
Current account deficit is not always necessarily categories, domestic product availability, and
considered bad for the economy of a nation. It national industry growth.
is the same as negative cash flow of a company,
deficit will result positive outcome if the The review from this team has been examining
state budget is used for funding productive the commodities that have been imported but
investments that will earn revenue for the state don’t really add value to Indonesia’s economy
budget in the future, namely for infrastructure significantly. Those commodities are later
and domestic industry development. However, classified as tertiary needs such as luxury goods.
deficit will not have positive outcome as The government has identified that there are
earning revenue in the future if it is only used at least 900 HS Codes of commodities that can
for funding consumption expenditures. be produced in this country, whereas those
commodities will be imposed by higher import
tariff.

Volume 50, Nomor 9, September 2018 - Warta Bea Cukai | 17