Purbaya Reveals Prabowo's Proposal to Disband Customs Authority and Replace it with SGS

Jakarta — Finance Minister Purbaya Yudhi Sadewa has revealed that President Prabowo Subianto had previously proposed disbanding the Directorate General of Customs and Excise. The agency was planned to be replaced by international inspection company Société Générale de Surveillance, or SGS.

The proposal emerged as the government highlighted various problems previously associated with the Customs and Excise agency’s performance.

“Several weeks ago I had a meeting at the Palace with the President. He always said to disband Customs and Excise, replace it with SGS, but it turns out there has been improvement,” Purbaya explained after inaugurating Level II officials at the Finance Ministry on Tuesday (10 March 2026).

Recent evaluations have revealed several improvements within the Customs and Excise authority. These findings have led the government to conclude that disbanding the agency is unnecessary.

“But it turns out I see there is improvement there and I am confident we can improve Customs and Excise so it does not need to be replaced,” he said.

Purbaya attributed the progress to reform efforts undertaken by the leadership and staff of Customs and Excise in recent times.

The changes have also begun to attract attention from President Prabowo.

“This is remarkable recognition. We have not yet reached our goal, but improvements are already visible,” Purbaya stated.

The President reportedly indicated that tax revenue has increased by approximately 30 per cent following the reform measures implemented in January and February.

“It turns out that after being shaken up in January and February, tax revenue could rise by approximately 30 per cent,” Purbaya said.