Customs and Excise Revenue Plunges 13.6% in October 2023: What's the Cause?

Sri Mulyani, Minister of Finance, stated that customs and excise revenue reached Rp220.8 trillion by October 2023. This figure has reached 72.8% of the target in the State Budget (APBN).

However, the figure actually slumped by 13.6% year-on-year (yoy) compared to the same period in October 2022. The main cause was the decline in two components of customs and excise duties: export duties and excise duties in October 2023.

In detail, import duty revenue amounted to Rp41.4 trillion. This figure has reached 87.1% of the APBN target.

Ani, as she is also known, mentioned that import duties grew slightly by 1.8% (yoy). This achievement remains positive even though one of its drivers, namely imports, decreased significantly by 7.8% (yoy).

Meanwhile, export duties were recorded at Rp9.7 trillion, or 94.7% of the APBN target. Export duties contracted sharply by 74.4% (yoy).

Ani explained that the collapse in export duties was due to several factors, including a significant drop in palm oil export duties by 81.9% (yoy). Copper export duties also fell by 31% (yoy) due to a weakening of copper exports by 7.9% (yoy). In addition, bauxite export duties plummeted by 88.3% (yoy) due to the cessation of exports of this commodity since March 2023.

Another component, excise duties, was recorded at Rp169.8 trillion, reaching only 69.2% of the APBN target.

One of the excise duties, namely excise duty on tobacco products (CHT), decreased by 4.3% (yoy), due to a 2.1% (yoy) decrease in production until August 2023 and a 0.9% decrease in the weighted average tariff. The decrease in the average tariff was due to the weakening production of SKM and SPM group I.

(See also: [State Revenue Rp2,240.1 Trillion as of October 2023, These are the Biggest Contributors](https://databoks.katadata.co.id/datapublish/2023/11/27/pendapatan-negara-rp22401-triliun-per-oktober-2023-ini-penyumbang-terbesar))