Indonesian Political, Business & Finance News

Purbaya Says Customs and Excise Will Not Be Dissolved After Performance Improves

| Source: ANTARA_ID Translated from Indonesian | Economy
Purbaya Says Customs and Excise Will Not Be Dissolved After Performance Improves
Image: ANTARA_ID

Jakarta (ANTARA) - Minister of Finance Purbaya Yudhi Sadewa has assessed that the Directorate General of Customs and Excise (DJBC) has shown significant performance improvements. Consequently, President Prabowo Subianto will maintain the agency, and the discourse regarding its dissolution and the replacement of its functions by Société Générale de Surveillance (SGS) will not proceed. “Mr Prabowo has seen significant improvements at Customs and Excise. If he previously said to dissolve it, now he has said in a cabinet meeting that Customs and Excise can be improved and must be improved. That is a clear signal that there is positive development at Customs and Excise that is recognised by our leadership. So, it is likely that Customs and Excise will survive,” Purbaya said during the APBN KiTa July 2026 press conference in Jakarta on Tuesday. Purbaya explained that the improvements were made through an organisational overhaul and the placement of new officials in strategic positions. “Customs and Excise’s progress has been very good. We have reshuffled the employees there, and now the top leadership positions are filled with relatively better people. And they know that if they are not good, they will be dissolved, that is the important thing,” he stated. As of June 2026, customs and excise revenue was recorded at Rp152 trillion, growing 3.4 percent year-on-year (yoy). According to Purbaya, the performance improvement is also reflected in the reduced circulation of smuggled goods, including imported used clothing, and increased enforcement against illegal cigarettes. In this regard, Customs and Excise has also changed its approach to enforcement to create a greater deterrent effect. Previously, only illegal goods were seized while the vehicles and drivers were released; now, vehicles used to transport illegal goods will also be detained until the inspection process is fully completed. According to the Minister of Finance, this measure aims to increase the costs or risks borne by perpetrators so that smuggling practices are no longer cheap. “Every truck or vehicle that engages in illegal practices, detain it until it is completely cleared. I detain it so that the cost of carrying out illegal practices becomes expensive. So now, all Customs and Excise offices across Indonesia are probably full of trucks or cars transporting illegal goods,” he continued. Additionally, Customs and Excise has also begun implementing artificial intelligence (AI) technology in port surveillance to improve monitoring effectiveness.

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