Assessing Opportunities and Challenges of Transferring Customs Functions to PT DSI
The proposal to transfer part of the Directorate General of Customs and Excise’s (DJBC) functions under the Ministry of Finance to PT Danantara Sumberdaya Indonesia (PT DSI) has gained traction. As an entity designed to implement a single export gateway policy for three strategic natural resources, PT DSI is projected to strengthen downstream processing and economic sovereignty.
Is This Plan Feasible?
Technically and legally, the plan faces complex challenges but remains feasible with stringent transition measures. Here is an analysis of its viability:
Legal Aspect: Customs functions are currently a sovereign authority under the Customs Act. Transferring these to a PT entity requires specific legislation or government regulations to prevent overlapping jurisdictions.
System Infrastructure: DJBC’s Indonesia National Single Window (INSW) system is well-established. PT DSI must integrate its systems with global logistics ecosystems to avoid disrupting cargo flows.
Priority Scaling: Given PT DSI’s focus on three strategic commodities, a partial transfer (specific to these commodities) is more sensible than a general customs function shift.
Recommended Functions for PT DSI
To ensure effectiveness without disrupting state revenue, the following functions are recommended for PT DSI:
Export Verification and Validation: Conduct physical and document checks for the three strategic commodities to ensure compliance with quotas and downstream processing standards.
Integrated Logistics Management: Manage bonded warehouses or bonded logistics centres for strategic commodities to ensure cost-efficient transport.
Reference Price Monitoring: Determine and oversee export sale prices to align with global market rates, preventing transfer pricing.
Export Levy Administration: Handle administrative tasks related to export duties or royalties before validation by the national financial system.
Challenges and Risks
The primary risk is potential conflict of interest if PT DSI acts as both regulator and operator. Additionally, coordination with the Ministry of Finance remains critical, as export duty collection is a vital fiscal instrument for the national budget.