Purbaya: Rp123.8 Trillion Customs and Excise Revenue Signals Manufacturing Rebound

Finance Minister Purbaya Yudhi Sadewa has affirmed that national manufacturing activity is on an expansionary trend. This is reflected in the realisation of customs and excise revenues reaching Rp123.8 trillion as of the end of May 2026, equivalent to 36.8 percent of the 2026 State Budget target. Purbaya revealed that although cumulative growth has only reached 0.7 percent year-on-year (yoy), this positive trend marks a turning point after experiencing a contraction at the start of the year. He is optimistic the sector’s performance will continue to strengthen in the coming months. “Customs and excise are improving. We see that May’s growth was 0.7 percent, after April turned positive at 0.6 percent. Going forward, it will be even more positive,” said Purbaya during the APBN KiTa June 2026 Edition press conference in Jakarta. One of the sharpest indicators of the industrial rebound is the surge in import duty revenues, which were recorded at Rp21.5 trillion, growing significantly by 9.7 percent compared to the same period last year. This growth was driven by a 10.67 percent increase in imports of raw and auxiliary materials. According to Purbaya, this data is not just a figure but tangible proof that domestic production engines are running fast again. “These raw and auxiliary materials show that manufacturing activity is increasing. If there were no activity, this figure would not grow. This is in line with GDP figures showing our economy is growing,” he stressed. In the excise sector, realisation reached Rp90.4 trillion, a slight increase of 0.2 percent yoy. This performance was supported by the stability of tobacco product production in the first quarter of 2026. Meanwhile, export duties still recorded a contraction of 8.9 percent, with a value of Rp11.9 trillion. Nevertheless, Purbaya noted an improvement in export duty performance. This was triggered by the strengthening of crude palm oil prices in the global market during the March to May 2026 period, which is expected to dampen the rate of contraction by the end of the first half.