Aldira Sunrise 28 Mei 2024

Economy: Tax collection reaches 31.38% of FY24 target
The Ministry of Finance reported that tax revenue realization reached IDR 624.19T in 4M24, accounting for 31.38% of the FY24 state budget target. This tax revenue has seen a significant correction, falling by 9.29% yoy. The tax revenue from Non-Oil and Gas Income Tax stood at IDR 377T, equivalent to 35.45% of the FY24 target. However, the Non-Oil and Gas Income Tax was contracted by 5.43%. The revenue from Value Added Tax and Luxury Goods Sales Tax (PPN & PPnBM) was recorded at IDR 218.50T, equivalent to 26.93% of the FY24 target. (Kontan)
What we think: The Finance Minister said that the decline in commodity prices since 2023 continues to pressure tax revenues in 2024. Hence, there is a risk of a rising fiscal deficit if the tax revenue is below the target. With the expected commodity price to remain weak next year, the fiscal deficit may increase further.
WIIM will increase the production of filters
Wismilak Inti Makmur (WIIM) plans to increase the production capacity of filters this year by adding 6 new machines. Through the expansion, WIIM is optimistic to meet the production target of 6.7B filters or 26.8B cigarettes by the end of 2024. The company will also boost sales volume of hand-rolled cigarettes, with a target of 10-15% revenue growth. Meanwhile, WIIM plans to maintain production of machine-rolled cigarettes at 2.8B. (Kontan)
What we think: As of 1Q24, WIIM’s revenue declined 9.73% yoy to IDR 1.05T, driven by the decline in sales of machine-rolled cigarettes by 42.5% yoy to IDR 608.91B. Meanwhile, other segments, such as hand-rolled cigarettes, filters, and cigars recorded an increase to IDR 213.09B (+55.2% yoy), IDR 205.94B (+36.2% yoy), and IDR 569.94M (+10.3% yoy), subsequently.