Customs and Excise Revenue Surpasses Target in 2024

The Directorate General of Customs and Excise (DJBC) reported a revenue of IDR 300.2 trillion (approximately USD 18.44 billion) from customs and excise in 2024, growing 4.9 percent year-on-year and achieving 93.5 percent of the state budget target, according to reporting from Jakarta Globe.

This growth was driven by multiple factors, including higher import values and the strengthening of the US dollar, which boosted import duties; the relaxation of raw mineral export policies and rising crude palm oil (CPO) prices; and higher excise tariffs on tobacco and alcoholic beverages.

“Last year was a pivotal year for Customs in fulfilling its strategic role as a revenue collector. Despite global and domestic economic challenges, Customs remains committed to optimizing state revenue to support national development,” said Budi Prasetiyo, Head of the Customs and Excise Public Relations Sub-directorate, in a statement on Tuesday (14/1/25.)

Customs revenue from import duties reached IDR 53.0 trillion, a 4.1 percent year-on-year growth. After a slight decline in the first quarter due to a drop in global import values, growth picked up in the second quarter, driven by higher food imports and the depreciation of the rupiah. Consistent increases in raw materials and industrial goods imports sustained growth through the third and fourth quarters, says Jakarta Globe.

Export duties recorded IDR 20.9 trillion in revenue, a significant 53.6 percent year-on-year rise. Growth was driven by relaxed raw mineral export policies and rising CPO prices, which reached their peak in the fourth quarter. This performance helped offset the slower growth seen in the first quarter due to lower CPO prices and export volumes.

Jakarta Globe reports that excise revenue totaled IDR 226.4 trillion, growing 2 percent year-on-year. Of this, IDR 216.9 trillion came from tobacco products, IDR 9.2 trillion from alcoholic beverages, and IDR 141.1 billion from ethyl alcohol. Excise revenue rebounded after a first-quarter dip caused by reduced tobacco production in late 2023. Growth in subsequent quarters was supported by moderate increases in effective tobacco excise tariffs.

The DJBC attributed this positive performance to four key strategies aimed at optimizing revenue collection. These included collaboration with the Directorate General of Taxes (DJP) through joint target setting, data integration, and secondments to improve taxpayer compliance.

Customs and Excise also implemented advanced auditing practices using data analytics and e-audits while strengthening analysis units to enhance oversight. These efforts are part of its extra measures to maximize state revenue.

Additionally, the DJBC expanded its digital systems by enhancing the CEISA (Customs Excise Information System and Automation) application for court processes and developing integrated databases for handling disputes. These technological advancements aimed to streamline operations and improve efficiency, according to Jakarta Globe reporting.

 

Source: Jakarta Globe

Stock image by druckfuchs on Pixabay

The post Customs and Excise Revenue Surpasses Target in 2024 appeared first on Invest Indonesia.

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