Govt Launches Regulation that Prioritizes Fines over Prison Time

President Joko Widodo has issued Government Regulation (PP) No. 54/2023 concerning the Termination of Criminal Investigations in the Field of Excise for State Revenue Purposes. Article 2 Paragraph (1) of the regulation states that, in the interest of state revenue, upon the request of a minister or designated official, the Attorney General or a designated official may terminate an investigation into excise-related criminal offenses within six months of the request.

This cessation of investigation only applies to offenses stipulated in Articles 50, 52, 54, 56, and 58 of Law No. 11/1995 on Excise, as amended by Law No. 7/2021 on the Harmonization of Tax Regulations. The termination of the investigation is contingent on the payment of a fine amounting to four times the excise value due. This regulation took effect on Nov 22.

Previously, the Director of Communications for Customs Nirwala Dwi Heryanto stated that criminal sanctions are considered a last resort in law enforcement. Nirwala acknowledged that the implementation of this regulation must be approached with caution. The Finance Ministry coordinated with the Attorney General's Office and other institutions in formulating this regulation. "There is a synchronization of provisions there, and it needs to be handled carefully," Nirwala stated.

**Government Regulation (PP) No. 54/2023 is available for download below