Hundreds of Billions of Rupiah in Vehicle Smuggling Value (2016-2019)

The Directorate General of Customs and Excise revealed that the smuggling of vehicles has increased over the past four years. The estimated value of goods attempted to be smuggled ranges from hundreds of millions to billions of rupiah. From 2016 to 2019, the government has secured at least Rp 316 billion worth of cars and Rp 13.7 billion worth of motorcycles.

Finance Minister Sri Mulyani stated that the smuggling was uncovered based on information from the public and anomalies between the net weight of the goods and the declared type of goods.

This smuggling causes losses to the state of up to twice the original price of the goods, considering the potential loss of taxes. According to Sri Mulyani, there should be a 40% import duty and a 125% luxury goods Value Added Tax (VAT). From this year's vehicle smuggling cases, the state has lost hundreds of billions of rupiah.