Indonesia says will cut budget deficit target to 1% of GDP in 2019

[JAKARTA] Indonesia is aiming to cut the country's budget deficit to one percent of gross domestic product in 2019 partly through a reform of the tax system, Finance Minister Bambang Brodjonegoro said on Thursday.

A shortfall in tax revenue estimated at US$6.15 billion threatened to push the 2014 budget deficit in Southeast Asia's largest economy to breach a legally binding limit of 3 per cent of GDP.

Indonesia has imposed a temporary travel ban on selective individuals with outstanding tax bills as part of a crackdown on tax evasion. It had also reached an agreement with Singapore to step up efforts to share tax-related information.

REUTERS