Indonesian Political, Business & Finance News

Customs Future After State-Owned Export Entity Launch: Strong Reform Signal?

| | Source: KOMPAS Translated from Indonesian | Regulation
Customs Future After State-Owned Export Entity Launch: Strong Reform Signal?
Image: KOMPAS

JAKARTA — The presence of Danantara Sumberdaya Indonesia (DSI) as a commodity export entity signals the need for fundamental reform of the Finance Ministry’s Customs Directorate General (DJBC) in the future.

National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan said that export duties previously handled by DJBC could be transferred to the state-owned export entity through an integrated system.

Essentially, Customs would only oversee operations and adopt an AI-based digital ecosystem.

Luhut explained that reforming Customs is possible amid the establishment of the commodity export entity.

“If it’s not needed, why use Customs? Or, if Customs still has a role, all its tasks could be handled by AI,” he said after the ASEAN Regional Economics Outlook and Fiscal Policy seminar on Monday, 25 May 2026.

He highlighted the importance of AI as a partner across all sectors.

One of Indonesia’s previously respected fields, metallurgy, has been among the programmes of study cut.

“We used to be proud of metallurgy, but it’s been removed. I was surprised — why? They’re focusing on AI,” he added.

“So, what will Customs do? Is reform needed? Why not if this entity (Danantara Sumberdaya) exists?” he explained.

Luhut believes an AI-based system will make export and import reporting more transparent.

“It can’t be faked — the key is reducing face-to-face meetings,” he said.

He also noted that face-to-face interactions remain prone to issues even with integrity pacts.

He hopes the new ecosystem will curb fraud and increase state revenue.

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