Analysis of Ethyl Alcohol Excise Exemption According to Excise Law

Abstract

Ethyl alcohol or EA is one of the types of excisable goods stipulated in the current Indonesian Excise Law. Excise revenue from ethyl alcohol is very small when compared to total state revenue from the excise sector. This occurs because in Indonesia ethyl alcohol is a separate entity as an excisable goods which differs from alcoholic beverages or MMEA. Excisable goods which are in Indonesia referred to as ethyl alcohol in other countries are better known as spirits. Spirits or what is often referred to as “alcohol” with certain conditions "whether denatured or not", will get excise exemption facilities if it is to be used not as a beverage. The main objective of this qualitative research is to clarify the position of ethyl alcohol as an excisable goods, although the definition of ethyl alcohol in the Excise Law often overlaps with spirits as MMEA. The inclusion of ethyl alcohol as an excisable good is primarily not for state revenue but as an instrument for controlling these goods so that they are not misused to produce alcoholic beverages. The study results also suggest redefining all excisable goods in the form of alcoholic products in future amendments to the Excise Law.