Customs Authority Tightens Oversight of Luxury Watches Circulation
Jakarta — The Jakarta Regional Office of the Directorate General of Customs and Excise (DJBC) has intensified oversight of the circulation of imported luxury goods, particularly high-value watches, by inspecting several luxury watch retail outlets across various areas of Jakarta.
The Jakarta Customs Authority has emphasised that the tightened surveillance of imported luxury goods, particularly high-value watches, is being conducted to ensure that all customs administrative procedures and taxation obligations have been fulfilled.
Siswo Kristiyanto, Head of Enforcement Section at DJBC’s Jakarta Regional Office, stated that the authority had received data indicating that watches have been imported from abroad without following established customs mechanisms.
“Our focus is on high-value goods such as luxury watches entering Indonesia’s customs territory, particularly those that have not been declared or have been incorrectly declared in import documents,” Siswo said in a statement in Jakarta on Tuesday.
Recent inspections were conducted at several shops selling luxury products. However, in these operations, Customs has not yet taken sealing action.
So far, he said, the authority has only ensured that the goods being traded match the documents held by the companies. If there are goods that have not been verified in detail, business owners are asked to provide further explanation at the Customs office.
“We are simply ensuring that the goods in the shop match the documents. If anything has not been verified, we communicate with the business owner to provide clarification,” he said.
Siswo stated that the current inspection is the fifth of its kind. Previously, DJBC’s Jakarta Regional Office had conducted inspections and administrative investigations at several shops, including luxury jewellery retailers Tiffany & Co and Bening Luxury.
He explained that from a customs perspective, imported goods that are problematic and circulating in the market are classified as illegal goods.
This, he noted, could potentially be brought into criminal proceedings. However, current enforcement measures continue to prioritise an administrative approach.
“Currently, we prioritise fulfilling administrative obligations such as payment of import duties and import taxes so that companies are more compliant with customs regulations,” Siswo said.
On that basis, Customs has also urged business operators who have not fulfilled their customs obligations to immediately coordinate with DJBC’s Jakarta Regional Office before further oversight measures are taken.
Regarding inspection and sealing actions by Customs, Finance Minister Purbaya Yudhi Sadewa has assured that the Directorate General of Customs and Excise (DJBC) of the Finance Ministry will consistently take action against jewellery shops that sell their goods illegally.
He also emphasised that the government will take action against all illegal economic activities, especially those conducted openly, which indicates that the perpetrators believe the government is unable to act.
“So, as field officers say, it’s already stolen, then they sell it in front of us brazenly, that’s like insulting the government,” said Purbaya in Jakarta on Wednesday (25 February).
Previously, after sealing three Tiffany & Co shops at three Jakarta luxury shopping centres some time ago, DJBC’s Jakarta office once again sealed the luxury jewellery shop Bening Luxury Pluit in Penjaringan, North Jakarta.
Purbaya stressed that various gold shops in the Jakarta area that were sealed by DJBC were due to commodities they traded not meeting their obligations to pay import duties.
“Yes, the goods are Spanish (smuggled), half smuggled. This means there are some that pay 0 per cent import duty, some that pay 50 per cent, some that pay 25 per cent, which will be reviewed by Customs officials,” he said.
On the other hand, Purbaya admitted he did not yet know the total loss to the state from imported jewellery and gold items traded by various gold shops in Jakarta.