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Jakarta Post

Govt maintains revenue optimism in 2025 by expanding, intensifying policies

Creative Desk (The Jakarta Post)
Jakarta
Tue, October 15, 2024 Published on Oct. 14, 2024 Published on 2024-10-14T21:44:40+07:00

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Govt maintains revenue optimism in 2025 by expanding, intensifying policies (Photo: Biro KLI Kemenkeu)

I

n the last 10 years, the Indonesian economy has been one of the best-performing economies in the world, with average annual economic growth of above 5 percent, controlled inflation and a positive fiscal deficit as a result of effective consolidation.

These results were achieved through the government’s hard work with fiscal policies that are managed credibly, healthily and sustainably. This can be seen in the growth of state revenue from customs and excise, among other indicators.

M. Aflah Farobi, director of revenue and strategic planning at the Directorate General of Customs and Excise (DJBC), revealed that customs and excise revenue targets had continued to increase over the last 10 years, with the majority of realizations meeting the target.

"If we look at the majority, the targets have been met, except in 2014 and 2015 due to the decline in CPO prices as well as in 2016 because of the decline in tobacco production," he said at a media event in Anyer, Banten, on Sept. 26.

The optimism has continued with the achievements, and M. Aflah said the target for customs and excise revenue in 2025 was projected to be Rp 301.6 trillion, an increase of 1.73 percent compared to the 2024 outlook.

To achieve this, the Customs and Excise Directorate General is implementing various policies that support the economy, including the provision of customs facilities and incentives, followed by policies related to revenue, supervision and management support, such as IT infrastructure, HR and improvement of business processes.

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In addition, M. Aflah revealed other government strategies to achieve the revenue target in 2025, including through the expansion and intensification of excise taxes.

"In 2025, we will implement strategies on at least two sides. The policy expansion will be done through the imposition of export duty tariffs to encourage downstreaming. From the intensification side, we are looking at palm oil and mineral products, strengthening post-clearance policies, utilizing IT for services and supervision, as well as joint program activities within the Finance Ministry," he said.

Source: Finance Ministry

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