Indonesia's Tobacco Excise Generates Rp55.7tn in Q1 of 2025

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TEMPO.CO, Jakarta - Indonesia's Directorate General of Customs and Excise has reported tobacco excise revenue for the first quarter of 2025 at Rp55.7 trillion. This amount represents a 5.6 percent increase, driven by a shift in payments ahead of Eid, despite a 4.2 percent decline in production.

"Tobacco excise revenue could decline due to the absence of a tariff increase in 2025 and the continued trend of downtrading," said the Director General of Customs and Excise, Askolani, during a meeting with the House of Representatives' Commission XI at the Parliament Complex on Wednesday, May 7.

Over the past three months, the Directorate General of Taxes has taken action on 2,929 tobacco-related cases, totaling Rp367 billion in value. Additionally, 257.27 million cigarette sticks were destroyed during the same period.

Revenue from excise on beverages containing ethyl alcohol (MMEA) amounted to Rp1.5 trillion, a 6.6 percent decrease from the same period last year. "The decline in MMEA excise is influenced by a drop in domestic production," Askolani stated.

In the MMEA sector, Customs and Excise has handled 515 cases with a value of Rp17.8 billion in Q1/2025.

The Directorate General of Customs and Excise also reported a 9.6 percent increase in customs and excise revenue during the first quarter of 2025, totaling Rp77.5 trillion. "This increase was driven by higher export duties and excise," said Askolani.

The revenue was split across three segments: import duties at Rp11.3 trillion, export duties at Rp8.8 trillion, and excise at Rp57.4 trillion. Revenue from import duties decreased by 5.8 percent compared to the same period last year, when it amounted to Rp12 trillion.

Factors influencing this revenue include import value and volume, commodity prices, technical policies, and strengthened service and oversight.

In detail, import duties were driven by commodities such as natural gas, rice, sugar, motor vehicles, and spare parts for both two- and four-wheel vehicles. "Import duties were affected by the decline in imports of foodstuffs and motor vehicles, with 2025 revenue falling by 5.8 percent," Askolani explained.

Meanwhile, export duties of Rp8.8 trillion were influenced by rising palm oil (CPO) prices and copper export policies. CPO exports grew by 1,145.7 percent, while copper exports fell by 76.6 percent.

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