Hit By Many Challenges, The Role Of Customs And Excise Remains Crucial

Illustration. (Photo: Doc. Antara)

JAKARTA - In the midst of global economic turmoil and a number of challenges that have occurred, the State Budget (APBN) is still an important instrument of the national economy. The performance of the APBN, which is on the track itself, is supported by taxation which accounts for around 80 percent of state revenues, including excise and customs revenues. Many parties appreciate the performance of Customs and remind the crucial role of this institution in the country's economy.

Executive Director of the Center of Reform On Economics (CORE) Mohammad Faisal said that the role of Customs and Excise in the country's economy is crucial.

"The function is not only as a source of vital revenue for the state for the state budget, but on the other hand, in terms of trade traffic, it is related to trade activities. This is where Customs and Excise are crucial points," he said.

To note, in addition to state revenues, the Customs and Excise function is as a community protector, protecting the public from prohibited goods and limited imports or functioning as a trade facilitator and industrial assistance. Customs and Excise also carry out important functions by facilitating domestic industries and trade.

In the first quarter of 2024, state revenues collected IDR 620.01 trillion or 22.1 percent of the target. In terms of customs and excise, Customs and Excise revenues until March 2024 reached IDR 69 trillion or 21.5 percent of the target.

Faisal said the volume of goods traffic in and out of the country's territory was huge and involved such a large amount of money.

"Therefore, governance or governance in Customs and Excise is important. If the governance is good, then in terms of income or state revenue and regulations in terms of export trading, import control of goods is also maximized. Including control of illegal goods," he said, Wednesday, May 7.

But on the other hand, if not, then the side of the rules governing the entry and exit of goods from other countries is also ineffective.

"It also affects and can have its effect everywhere on the domestic economy, both consumers to producers, the manufacturing industry is also affected, now here the critical point is rather than the important role of Customs," he said.

Separately, Member of Commission XI DPR RI Kamrussamad, said that Customs and Excise performance in terms of state revenues every year is always in line with the target. In 2021 customs and excise income will reach IDR 269 trillion, growing 26.23 percent year on year (yoy) or 125.1 percent of the target.

In 2022, the realization of customs and excise revenues will reach IDR 317.8 trillion, growing 18.0 percent or reaching 106.3 percent of the target. Throughout 2023, in the midst of volatility in commodity prices due to the slowdown in the global economy and geopolitical conflicts, Customs and Excise also collected state revenues of IDR 286.2 trillion or around 95.4 percent of the target.

According to him, the thing that needs to be evaluated by Customs and Excise is the way of service at Soekarno Hatta airport. That way, state revenues can continue to be boosted.

"The calculation system for import Duty with self-assessment that has been in effect since September 2023, for example, requires cooperation from the community because the price is determined by the owner of the goods. However, if the price disclosed is unde value, it has the potential to be subject to a fine of 1,000 percent according to the PMK," said Kamrussamad.

Meanwhile, Public Policy Observer Trubus Rahardiansyah appreciates state revenues that have been well guarded. However, he also reminded Customs and Excise to encourage outside investors to enter into investment.

"The ambassadors of other countries also communicate a lot with Customs and Excise, because this is a very important role," he exclaimed.

Trubus reminded that another important role of the Directorate General of Customs and Excise includes anticipating the entry of drugs into Indonesia.

"Not to mention the role of Customs and Excise on health is also great. All health-related information comes in through Customs and Excise, I think we have to lift the positive things, it's a shame if they don't get exposed. Don't let those who appear are negative," he said.

He also suggested that in the future, in addition to continuing to make improvements and making intense reductions to the community, Customs and Excise also needs to optimize the use of digital systems to improve services.

"So there are no more individuals. We'll see for example, like in Singapore it's digital," he said.