Sri Mulyani Estimates Revenue from Export Duty to Decrease by 11 Percent Due to Downstreaming

Finance Minister Sri Mulyani and the ministers took a group photo together during the press conference of the RAPBN and the Financial Note for the 2024 Fiscal Year in Jakarta, Wednesday (16/8/2023). (Doc. ANTARA/Imatul Silfia)

JAKARTA - Minister of Finance Sri Mulyani estimates that Indonesia's export duties in 2024 will decrease. According to him, this decline was due to downstream policies carried out domestically in order to provide added value to commodities.

"Export duties are expected to decrease because we are indeed carrying out the consequences of downstreaming," Sri Mulyani said in a Press Conference on the 2024 Financial Notes and State Budget, quoted on Thursday, August 17.

The state treasurer revealed that the 2024 state budget draft estimates that export duties will decrease by 11.5 percent to IDR 17.5 trillion compared to the outlook for revenue from this year's import duties.

Sri Mulyani added, this reduction does not apply to import duties which are expected to grow by 8.1 percent or Rp. 57.4 trillion and excise revenues which are expected to increase by 8.3 percent or Rp. 246.1 trillion. Thus revenue from customs in 2024 is expected to grow 7 percent from the 2023 outlook or Rp. 321 trillion.

Even though it has decreased, said Sri Mulyani, export duties are not a mainstay for state revenues on the grounds of the added value of commodities.

"Indeed, export duties are not a mainstay because we want more added value in the country. Export duties are expected to decrease by 11.5 percent or IDR 17.5 trillion," she said.

Meanwhile, Non-Tax State Revenue (PNBP) is also expected to decrease by 8.3 percent from the 2023 outlook to IDR 473 trillion due to contributions from domestic commodity prices.

"If we see that commodity prices tend to decrease, then PNBP from natural resources is not expected to be as high as in 2022 and 2021," he continued.

For this reason, the government will maximize BUMN dividends, innovation and service quality from Ministries/Institutions that have Public Service Agencies (BLU) including the Police for SIM and STNK and strengthening supervision and Compliance of PNBP Payers (WB).