Observer: Customs Authority must undergo total reform, not be dissolved
Jakarta — Telisa Aulia Falianty, professor at the Faculty of Economics and Business at Universitas Indonesia, has stressed that the Directorate General of Customs and Excise (Bea Cukai) should not be dissolved but instead undergo total reform starting from top leadership.
“If it is dissolved, who will handle customs and tax matters? It will only make things worse. The role of customs and tax is also very crucial. To inspect goods, control the flow of imports and exports, and manage excise taxes to reduce negative externalities. So the reform must be thorough,” Telisa said in a statement in Jakarta on Monday.
Telisa argued that Bea Cukai should not be abolished because the state requires customs and tax functions—a necessity in every country. However, he stressed that recruitment patterns need to be improved to ensure the agency is staffed by people of integrity.
“It depends heavily on the integrity of individuals, even though there is digitalisation in various customs systems. The systems used are also very important,” he said.
He also called for digitalisation of the customs and excise system to reduce the likelihood of human error related to violations committed by staff members.
“As we know, there are many state revenue leaks there. Excise transactions, trade transactions, and the movement of goods in and out have a significant impact,” Telisa added.
Economist Milko Hutabarat from Universitas Kristen Indonesia (UKI) echoed similar sentiments, stating that Bea Cukai need not be dissolved and replaced with SGS, but rather reformed more firmly, measurably, and transparently.
According to Hutabarat, the Directorate General of Customs has supervisory, law enforcement, service-facilitation, and state revenue optimisation functions.
“To that end, reform must be carried out by eliminating corruption points, establishing strong risk management through the Authorised Economic Operator (AEO) programme, improving human resource quality, establishing clear and transparent service standards for the public, and accelerating data integration across agencies,” Hutabarat explained.
Hutabarat noted that reform can include personnel replacement at all levels, from the Directorate General down to support staff.
Earlier, Finance Minister Purbaya Yudhi Sadewa stated that the Directorate General of Customs and Excise need not be dissolved despite earlier proposals for its replacement. President Prabowo Subianto, according to Purbaya, had proposed dissolving the Directorate General and transferring its functions to international inspection firm Société Générale de Surveillance (SGS).
This proposal emerged as the government scrutinised various issues related to the performance of the customs authority.
Purbaya previously issued a stern warning to Customs officials to improve service quality immediately, cautioning that if improvements are not made, the customs system could revert to the Old Order model previously employed.
Separately, former KPK investigator Yudi Purnomo Harahap stated that allegations of corruption at Bea Cukai could be remedied on the condition that individuals suspected of involvement in corruption cases be immediately replaced, particularly following a recent KPK operation that revealed involvement from directors to lower-level employees in allowing illegal goods to enter the country.
“With people of integrity, who are not easily bribed and who carry out their duties professionally, certainly the flow of goods traffic will become more transparent and provide optimisation of state revenue, especially as the state needs income sources to finance government programmes,” Yudi said.
According to Yudi, the chronic problems at Bea Cukai must be eradicated because they not only benefit corrupt Customs officials but also reduce state revenue and harm the public and business operators.
He noted that many Customs officers remain clean and of high integrity.
“These are the people who should fill strategic positions at Bea Cukai, because without clean employees, corruption will repeat itself and will only bring new players,” he concluded.