Institutional Transformation Deemed Crucial, IAW Reveals Reasoning
Jakarta – Indonesian Audit Watch (IAW) Secretary Iskandar Sitorus has stated the need for a breakthrough to strengthen the Directorate General of Customs and Excise (DJBC). One proposal is the Indonesian Customs and Excise Authority (OKCI) model.
He explained there are three institutional options. The first is to strengthen the DJBC while maintaining its position as a directorate general under the Minister of Finance. This approach would involve comprehensive improvements in data governance, separation of service and risk functions, integrity audits, access control, decision-making transparency, and enforcement oversight.
“The advantage of the first model is that the transition is easier. Relations with fiscal policy, the state budget, and the Ministry of Finance are maintained,” he said on Wednesday. “However, the weakness is also clear: bureaucratic culture and old mandate conflicts could potentially persist.”
The second option is to form a semi-autonomous body that remains under the Minister of Finance. In this model, the authority would be given greater flexibility in managing human resources, technology, remuneration, and operations, whilst fiscal policy coordination remains with the Minister of Finance.
Iskandar noted that a semi-autonomous model allows for deeper changes without completely separating the customs function from state financial management. However, he warned of new risks if such autonomy is not accompanied by strong oversight.
“A semi-autonomous body can provide greater room for professionalisation and modernisation. But flexibility must not turn into exclusive power. Autonomy must always be paired with supervision and accountability,” he stressed.
The third option is to establish a government institution that reports directly to the President. Under this model, the OKCI would become a specialised institution handling customs functions and economic border protection, whilst tariff policy, revenue, and fiscal matters would still be coordinated with the Minister of Finance.