Collusion Between Customs Officials and Importers Suspected by Finance Minister Purbaya in the Sealing of Three Tiffany & Co Stores
The sealing of three Tiffany & Co luxury jewellery outlets in Jakarta has uncovered suspicions of fraudulent import practices for high-value goods. Finance Minister Purbaya Yudhi Sadewa has alleged possible collusion between business operators and certain officials from the Directorate General of Customs and Excise (DJBC). Although he has not named specific parties, Purbaya emphasised that these indications are being investigated following his reshuffle of officials within the customs agency.
“It seems there is (collusion), we’ll see who was involved from the old guard. These are the new officials I’ve placed after rotating the good ones,” Purbaya stated at Wisma Daanantara in South Jakarta.
The sealing occurred after Jakarta customs officials discovered several imported items lacking the required trade documents. Some goods are suspected of entering the country without any payment of state duties whatsoever. According to Purbaya, such practices harm the state by reducing customs revenue and taxes. The methods vary, from paying only a portion of duties to undervaluing imported goods.
“Indeed, those goods from Spain include some that were fully smuggled and others that only paid through under-invoicing – it’s all evident,” he explained.
He stressed that this enforcement action serves as a stern warning to non-compliant businesses. The government will pursue all violations and enforce payment of state obligations. “Going forward, they won’t be able to do this anymore; some claim they’re willing to pay out of conscience,” he asserted. “Basically, we’ll chase down anything illegal – that’s all I’ll say for now, and I’ll communicate with the Customs people to get the full picture.”
Previously, the Jakarta Directorate General of Customs and Excise sealed three Tiffany & Co stores at Plaza Senayan, Plaza Indonesia, and Pacific Place during an operation targeting high-value goods. The action was taken due to allegations that not all high-value items were properly declared in import documents.
Siswo Kristyanto, Head of Enforcement at Jakarta Customs, stated that the process is still in the administrative investigation stage, involving cross-checking of company documents against authority records. “At present, we are still conducting research because we need to align the documents they declared to us with those in our records. So, for the types [of violations], we are still investigating. We reiterate that what we are doing is supervisory work, still within the administrative framework,” Siswo said in a written statement.
He confirmed that companies found guilty could face severe penalties under Law No. 17 of 2006 on Customs, including fines up to 1,000 percent of the customs value and import taxes. Tiffany & Co’s management has been asked to provide detailed clarification on the reporting and payment status of duties for the sealed goods in their stores and vaults.
This case has drawn attention as it marks the first time a global high-end jewellery brand has been implicated in alleged import violations in Indonesia, while also signalling the government’s tightening oversight of luxury goods and potential revenue leaks.