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Customs and Excise increase state budget to help Indonesia’s recovery
As the nation starts recovering from the pandemic slump, Indonesia’s 2022 state budget has also grown strengthen in line with the increase in state revenues from the tax sector.
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s the nation starts recovering from the pandemic slump, Indonesia’s 2022 state budget has also grown strengthen in line with the increase in state revenues from the tax sector. One of the supporting components is an increase in customs and excise revenues originating from import duties, export duties and excise.
“The state budget will remain responsive, flexible and anticipatory in the face of uncertainty,” assured Director of Communications and Service User Guidance, Nirwala Dwi Heryanto. He revealed that the government consistently ensures that the state revenue and expenditure budget (APBN) will be able to play a role as an economic catalyst in tentative global conditions.
Based on data collected through April 19, tax revenue from the customs and excise sector amounted up to Rp 93.95 trillion, which is 38.35 percent more than the initial revenue target for the state budget in 2022. It is also an increase of 32.99 percent compared to last year.
Customs and excise revenues were mainly supported by revenues from excise, particularly tobacco excise (CHT), which reached 69.85 percent of the total realization of customs and excise revenues. The CHT trend has consistently grew since last year, and supported by international taxation in line with the upward demand in commodity prices and export-import activities since the beginning of 2022.
The total revenue signals an increase growth of 23.52 percent year-on-year (yoy), 35.89 percent (yoy), and 115.18 percent (yoy) for excise, import and export duties respectively. While this may be parallel with the improvement of economic condition of the average consumer, it is also because of the consistent effort done by customs and excise actors through increased supervision and compliance by business stakeholders.
“The Customs and Excise are routinely increasing their supervision by synergizing with other law enforcement officers, such as the Indonesian National Police and the Indonesian Armed Forces (TNI). Increasing the compliance of business actors is also carried out through routine customs visit customers," said Nirwala.
Since March 2022, the state budget has been allocated for other sectors; pre-employment cards, the smart Indonesia program, and school operational assistance of Rp. 103.5 trillion for the education sector; cooking oil cash transfers, village cash transfers, and assistance for national health insurance contributions in the amount of Rp 81 trillion; and subsidy spending, which includes subsidies for 3 kg of LPG, people's business loans, and fuel subsidies in the amount of Rp 38.5 trillion.
Moreover, Rp 18.7 trillion was allocated to capital expenditures, such as the modernization defense and security equipment, and construction of network roads and irrigation, as well as improvement of technology, information and communication. The government also spent Rp 42.6 trillion for cash assistances made out to 491.1 thousand street vendors and 7.1 thousand Covid-19 patients.
“The government will actively socialize the management and accountability for the realization of the APBN as a form of government accountability. We also appreciate the people who continue to monitor the management of the state budget," concluded Nirwala.
