Export and import duties almost reach 2010 target

The government’s target to raise Rp 81.83 trillion from export and import duties and excise this year will be met, given that it has already generated 76 percent of this figure, a senior customs and excise official says.

Strong results in the first nine months of this year were partly a result of internal reforms carried out by the Customs and Excise Office, Customs and Excise Director General Thomas Sugijata said Tuesday.

Among efforts to increase revenue, the office had aimed to improve its collection systems by tightening inspections of import and tax documents, Thomas told The Jakarta Post.

“We will work to continuously improve our accuracy both in determining the value of customs duties and in classifying imported goods,” he said on the sidelines of a hearing with House Commission XI overseeing finance and banking.

Thomas said the government would also strengthen its monitoring of remote areas troubled by smuggling. With more accurate customs inspections, the government would gain more revenue from export-import duties and excise, he said.

As of Sept. 15, revenue from export and import duties and excise reached Rp 62.36 trillion. This amount comprised Rp 3.54 trillion from import duties, Rp 45.80 trillion from excise and Rp 3.02 trillion from export duties.

“The total state revenue from export and import duties and excises from January to Sept. 15 has already reached 76.21 percent of this year’s total target,” Thomas said.

Revenue targets from export and import duties and excise had been met consistently since the Tax Office carried out its internal reforms in 2007, he said.

Apart from reforms, this year’s increase in customs revenue was also a result of an increase in imports, despite the fact that import duties for a number of commodities had been removed in accordance with free-trade agreements including that with China.

Thomas said import tariffs for around 9,000 commodity items had been reduced significantly after the introduction of the FTAs.

“In 2010, the average import tariff on thousands of [items] was only 1.8 percent,” he said.

In 2010, raw materials topped the list of imported goods, followed by capital goods and consumption goods.

“In 2011, the breakdown of imported goods will remain roughly the same as it has been this year,” Thomas said.

Separately, on Tuesday, Finance Minister Agus Martowardojo said the prospects for Indonesia’s balance of payments in 2011 were positive, despite the fact that the global and domestic economies had not completely recovered from the major downturn in late 2008.

This outlook was supported by increases to commodity prices and improvements to Indonesia’s credit ratings, he said.

According to the government, imports in 2011 would show a sharp increase compared to exports.

“This is in accordance with the acceleration of the domestic economy that remains strong,” Agus said.

Under such conditions, in 2011 the Rupiah would remain stable, he
said. (ebf)