Indonesia's Excise Legal Regime in a Nutshell

As part of the country’s taxation and customs regime, excise is basically a tool which is used by the authorities in order to control the consumption of certain goods which are considered harmful to health, such as tobacco and alcoholic beverages.

It is expected that the consumption of excisable goods will ultimately be reduced through the imposition of excise duty. In Indonesia, the revenues generated from excise duty in 2017 were high, specifically IDR 75,911,380,000 from the target revenue, which was set at IDR 153,165,000,000. For the sake of comparison, the Directorate General of Customs and Excise only set a revenue target from import duty for 2017 of IDR 33,279,000,000 or five times lower than the target revenue from excise duty.[1]