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Customs' revenue grew 4.9 percent in 2024
Customs and Excise revenue hit Rp 300.2 trillion (US$19.3 billion) in 2024 and grew 4.9 percent, driven by robust imports, export policy changes and higher tobacco taxes.
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Routine procedure: International arrivals go through customs on May 6, 2024, in Terminal 3 at Soekarno-Hatta International Airport in Tangerang, Banten. (Antara/Muhammad Iqbal)
T
he Customs and Excise Directorate General has reported a 4.9 percent increase in revenue for 2024, reaching Rp 300.2 trillion (US$19.3 billion), or 93.5 percent of the state budget target.
Customs revenue reached Rp 53 trillion, marking 4.1 percent year-on-year growth, driven by higher imports of industrial raw materials.
The export duties sector saw a remarkable performance, with a 53.6 percent surge, totaling Rp 20.9 trillion, boosted by rising crude palm oil (CPO) prices and the easing of mineral export restrictions.
Excise revenue also increased, rising by 2 percent to reach Rp 226.4 trillion. Tobacco products were the largest contributor at Rp 216.9 trillion, followed by beverages containing ethyl alcohol at Rp 9.2 trillion.
Although production slowed slightly, excise revenue rebounded after the government raised tobacco excise rates.
The Customs and Excise public relations and counseling sub-directorate head Budi Prasetiyo credited the strong performance to several key factors.
Among them were the growth in import values and the strengthening of the United States dollar, which boosted import duties. The relaxation of raw mineral export policies, rising CPO prices since June and higher tobacco excise taxes also increased export duties.
"The year 2024 showed important momentum for the Customs and Excise Directorate General in carrying out its strategic role as a revenue collector," Budi told reporters in Jakarta on Tuesday, as quoted by kompas.com.
“Amid global and domestic economic challenges, the Customs and Excise Directorate General continued to demonstrate its commitment to optimizing state revenue to support national development.”
Budi said the implementation of four key strategies to optimize state revenue led to the increase. The strategies include collaboration with the Taxation Directorate General, customs and excise audits using data analytics and development of the Ceisa Siap Tanding application system.
Looking ahead to 2025, however, the government faces a challenging task in meeting its excise revenue target of Rp 244.2 trillion, a 7.86 percent increase over 2024.
Separately, economist Yusuf Rendy Manilet from the Center for Reform on Economics (CORE) warned that the ongoing decline in consumer purchasing power and the government's decision not to raise excise rates would make this target hard to reach.
The planned introduction of excise taxes on sweetened beverages in the second half of 2025 could also place additional strain on the food and beverage industry.
To meet the target, experts suggest that the government must intensify efforts to combat the illegal tobacco trade, streamline excise administration and enhance taxpayer compliance.
"Without these steps, reaching the set target will be difficult, especially with weak purchasing power and no additional stimulus from a rate hike," Yusuf said on Monday, as quoted by kontan.co.id.
