Luhut on Customs Reform: 'If Not Needed, Why Keep It?'

National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan stated that customs reform could be considered as part of establishing a commodity export body. This follows President Prabowo Subianto’s demand for the Director General of Customs (DJBC) to be replaced if they fail to improve. “If it’s not needed in the future, why keep Customs? Or, if Customs has tasks, all of them could be handled by AI,” he said after the ASEAN Regional Economics Outlook and Fiscal Policy seminar on Monday, 25 May 2026. He emphasised the importance of integrating AI as a partner across all sectors. For instance, Luhut noted that China has eliminated dozens of academic disciplines to focus on AI development. Fields once highly regarded in Indonesia, such as metallurgy, have been among those discontinued. “We used to be proud of metallurgy, but it’s been scrapped. I was surprised—why? They’re focusing on AI,” he added. “I wonder, what’s the point of Customs? Should there be reform? Why not if there’s a new body like Danantara Sumberdaya?” he explained. Luhut believes an AI-based system would enhance transparency in export and import reporting. “Because it cannot be faked, the key is reducing face-to-face interactions,” Luhut stated. He also highlighted that even with integrity pacts, face-to-face meetings can still lead to issues. He hopes the new ecosystem will reduce fraud and increase state revenue. “If they’re not doing the job right, just replace them. We’ll see. If it’s an order, I’ll comply. I can’t refuse orders, but I’ll check first,” Purbaya told reporters at the DPR building in Jakarta on Wednesday, 20 May 2026. Previously, during a DPR session, President Prabowo Subianto instructed Finance Minister Purbaya Yudhi Sadewa to replace Customs leadership if they failed to act swiftly and responsively. Prabowo made the remarks while outlining government service improvements for citizens. He urged the Finance Ministry to take firm action if Customs leadership cannot improve the institution. “I’m reminding you again—Customs must be improved. Finance Minister, if the Customs chief can’t do it, replace them immediately,” Prabowo said.