The Customs agency of Indonesia is unlikely to meet its excise and customs revenue target this year, according to a report by Indonesia-Investments.
From January 1, 2015 to the first week of September, Indonesia only managed to collect IDR103.7 trillion (about US$7.2 billion) in excise and customs duties revenue, or 53 percent of the full-year target of IDR195 trillion set in the Revised 2015 State Budget.
As such, it is highly unlikely that this year’s government target will be met, said the report. Heru Pambudi, Director General of the Finance Ministry’s Directorate General of Customs and Excise, said it is more likely that 95% of the target will be achieved, adding that the bulk of revenue comes from tobacco excise, followed by alcoholic beverages.
Recently, the Indonesian government eased custom payments for manufacturers of excisable goods in order to boost state revenue.
Photo courtesy of IPC
