No fanfare for Indonesia as economy hits trillion dollar mark

JAKARTA (Jan 4): Indonesia’s economy, the largest in Southeast Asia, hit a milestone last year by reaching US$1 trillion ($1.3 trillion), yet the mood wasn’t celebratory as the government continued to miss its revenue targets.

Gross domestic product was an estimated US$1.004 trillion in 2017, but economic growth was probably lower than the 5.2% initially projected, according to figures released by Finance Minister Sri Mulyani Indrawati on Tuesday.

Despite having the fourth-biggest population in the world -- at more than 260 million -- the government collects little tax from its citizens. Government revenue was 14% of GDP in 2016, lower than its peers, and a key obstacle to faster growth and credit-rating upgrades. Revenue was 80 trillion rupiah ($5.9 billion) short of its target last year.

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