Excise Revenue Reaches IDR 174.37 Trillion Until October 2024

Rupiah (photo: dock. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) noted that until the end of October 2024, excise revenues amounted to Rp174.37 trillion or 70.86 percent of the target, or grew 2.71 percent (yoy).

Citing our State Budget Report Edition in November 2024, this performance was driven by excise performance from Tobacco Excise (CHT), Drinks Containing Alcohol Ethyl (MMEA), and Alcohol Ethyl (EA).

CHT revenue grew 2.28 percent (yoy) to IDR 166.97 trillion or 72.47 percent of the target. This performance is influenced by an increase in production of 1.1 percent (yoy), especially in the Type of Hand Research and Technology Cigarette (SKT).

Meanwhile, SKT is a product that involves a lot of manual workers, whose increase can absorb more labor.

MMEA's Excise Revenue rose 13.30 percent (yoy) to IDR 7.16 trillion, reaching 76.75 percent of the target. The increase was mainly driven by the MMEA tariff increase policy while production was still under control, down 2.23 percent (yoy).

This is in line with the policy of increasing tariffs as an effort to control consumption of alcoholic beverages. This policy is expected to reduce the negative impact on public health while increasing state revenue from the excise sector.

Meanwhile, EA's Excise Revenue performance rose 16.91 percent (yoy) to Rp117.48 billion, or 112.65 percent of the target. This positive performance was driven by an increase in EA pay 16.50 percent (yoy) production.

Meanwhile, the value of EA's acceptance is not significant because most EAs are produced, free of excise, or exempt for medical purposes, industry, and other facilities.

To note, the achievement of Customs and Excise revenues comes from excise revenues of Rp174.37 trillion, import duties (BM) of Rp43.16 trillion, and Customs and Exit (BK) of Rp14.20 trillion.

In more detail, the realization of Customs and Excise revenues is mainly sourced from the acceptance of Tobacco Products Excise (CHT) which contributes 72.47 percent of its total revenue.

Based on its growth, customs and excise revenue performance increased in all components of revenue, excise growth was 2.71 percent (yoy), while customs performance (BM and BK) also grew 4.21 percent (yoy) and 46.78 percent (yoy), respectively.

Until the end of October 2024, the performance of CHT acceptance was still influenced mainly by the increase in cigarette production in class II and III. Furthermore, BM's performance was more influenced by the strengthening of the US Dollar exchange rate against Rupiah and the increase in import value.

On the other hand, the performance of the BK which is still increasing significantly is driven by the policy factor for relaxing exports of copper commodities, while the BK for palm oil products has decreased due to the decrease in the average CPO price and export volume of palm oil products.