Jakarta. Indonesia’s customs and excise revenue fell 14.7% year-on-year in the first two months of 2026 to Rp 44.9 trillion ($2.7 billion), Deputy Finance Minister Suahasil Nazara said on Wednesday.

The figure represents only 13.4% of the government’s full-year target of Rp 336 trillion ($19.9 billion).

In contrast, tax revenue rose sharply, reaching Rp 245.1 trillion ($14.5 billion) as of Feb. 28, up 30.4% from Rp 188 trillion recorded in the same period last year.

Export Duties Hit by Lower Palm Oil Prices
Customs and excise collections fell by roughly Rp 7 trillion compared with the Rp 52.6 trillion collected in the same period last year, Suahasil said during a press conference in Jakarta.

Excise revenue totaled Rp 34.4 trillion, declining 13.3% year-on-year.

The sharpest drop occurred in export duties, which generated only Rp 2.8 trillion — down 48.4% from a year earlier — largely due to lower global prices for crude palm oil, Suahasil said.

Import duties were the only component to record positive growth, rising 1.7% to Rp 7.8 trillion. The increase was driven by stronger import activity, which expanded by about 16%.

Beyond revenue collection, the Directorate General of Customs and Excise has also intensified enforcement.

By February 2026, authorities had recorded 2,872 cases involving illegal cigarettes, an increase of 44.1%. Seizures reached 369 million illicit cigarettes, more than doubling from a year earlier.

In narcotics enforcement, customs officers carried out 234 operations, confiscating approximately 0.7 tons of drugs.

“Customs and Excise will continue working with other law enforcement agencies to ensure Indonesia is free from illegal cigarettes and narcotics,” Suahasil said.

Tax Revenue Strengthens Government Finances
Tax revenue increased by about Rp 57 trillion compared with January–February 2025, helping the government accelerate spending programs, Suahasil said.

State spending in the early months of 2026 reached Rp 493.8 trillion, up 41.9% year-on-year. Of the total, Rp 346.1 trillion was spent by the central government, while Rp 147.7 trillion was transferred to regional administrations.

Tax receipts were supported by several major categories.

Corporate income tax contributed Rp 23.7 trillion, rising 4.4% year-on-year. Personal income tax generated Rp 29 trillion, up 3.4%. Final withholding tax brought in Rp 52.2 trillion, increasing 4.4%.

The strongest growth came from value-added tax and luxury goods sales tax, which reached Rp 85.9 trillion, surging 97.4% from a year earlier.

Other tax categories generated Rp 54.4 trillion, representing a 24.2% annual increase.