National Economic Council Chair Supports Customs System Reform Using Artificial Intelligence

Jakarta - National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan has backed the Directorate General of Customs and Excise (DGCE) under the Ministry of Finance to reform its system using artificial intelligence (AI).

The reform is necessary to enhance the effectiveness of the customs sector through digitisation, coinciding with the establishment of PT Danantara Sumber Daya Indonesia (DSI) as a single-window export agency.

‘I think the DGCE needs reform – why not? If required with the establishment of this agency (DSI). But again, I trust the system, this digitised system based on AI,’ Luhut Binsar Pandjaitan said in Jakarta on Monday.

He urged the DGCE and DSI to expand the use of AI in reporting and monitoring systems for export and import of goods, particularly mineral resources.

He strongly supports AI use as it reduces interpersonal contact in the export-import licensing process.

‘If face-to-face meetings rely on integrity deeds, none are properly followed – as far as I know, not a single one is executed correctly. There will always be issues (fraud),’ Luhut stated.

He is optimistic that the government’s digitisation efforts through the Indonesia National Single Window (INSW) will significantly curb such fraudulent practices.

‘Everything will be connected, and AI will monitor everything. Exporters won’t be able to evade government requirements and regulations,’ he said.

One of the government’s aims in establishing PT Danantara Sumber Daya Indonesia is to eliminate export-import fraud such as underinvoicing, transfer pricing, and unrecorded transactions, which reduce state revenue.

The government will transfer export data from the DGCE’s system to the Danantara Indonesia Investment Management Agency (BPI) as part of implementing PT Danantara Sumber Daya Indonesia’s mandate.

Economic Coordinating Minister Airlangga Hartarto stated on Thursday (21 May) at the Economic Coordinating Ministry office in Jakarta that the DGCE is involved in finalising the duties of the state-owned enterprise dedicated to exports.

Export data is currently available in the DGCE and INSW systems, a unified digital platform for managing licensing, customs, and documentation for export and import.

The data includes information on exporters, goods owners, importers, and recipients in destination countries. These details will be added to Danantara’s system, enabling it to manage export governance effectively.