The implementation of ASEAN-China free trade may reduce the cost in real sector which could raise the business profit to be taxed by the Indonesian government, an official with at the Finance Ministry said here Monday.

Agung Kuswandono, technical director at the Directorate General of Customs and Excise of the ministry, said that the free trade implemented on Jan. 1 could reduce import duty, which will in turn reduce the cost on real sector.

The finance ministry expects the directorate general can collect 19.57 trillion rupiah (some 2.09 billion U.S. dollars) in import duty this year, up 5.1 percent from that in 2009, the Jakarta Post said.