Jakarta. Director General of Customs and Excise Djaka Budhi Utama on Wednesday pledged sweeping institutional reform after Finance Minister Purbaya Yudhi Sadewa issued a stark ultimatum: improve performance within one year or face dissolution and replacement by an international surveying company.

Djaka said the Customs Directorate General must ensure that the dark era of 1985–1995 -- marked by rampant corruption, illicit levies, invoice manipulation and collusion between importers and customs officers -- never returns. During that period, pervasive misconduct severely undermined state revenue and eroded public trust.

“We never want the dark history of 1985 to 1995 to be repeated in Customs,” Djaka said in Jakarta.

In response to widespread corruption at the time, the government had taken the extraordinary step of outsourcing key customs inspection functions to Société Générale de Surveillance (SGS), the Swiss inspection company, to plug revenue leakages.

Three Pillars of Reform
Djaka said the new reform drive will focus on three core pillars: cultural transformation, service improvement, and strengthened oversight at ports and airports.

These steps, he said, are crucial for dismantling the long-standing negative reputation surrounding the institution.

“Customs must reform itself to remove its negative image. It starts with culture, improving performance and enhancing oversight—whether at ports or airports. We will improve all services,” he said.

Governance reform and tighter supervision procedures will be central to preventing violations and ensuring greater public accountability. Customs is also accelerating the adoption of advanced technology, including artificial intelligence, to detect underinvoicing and other forms of fraud.

“We have begun integrating AI. It’s still imperfect, but we are moving in that direction,” Djaka added.

Zero Tolerance for Misconduct
Internally, Djaka stressed that reform will fail if rogue behavior persists. He promised firm disciplinary action against any personnel engaged in wrongdoing.

“Anyone who remains disobedient will be dealt with—simple as that,” he said, declining to elaborate.

On November 27, Finance Minister Purbaya Yudhi Sadewa delivered a forceful message before Parliament: the 16,000-strong Customs workforce must reform within one year or risk being replaced entirely by SGS, echoing the solution used during the Soeharto era.

“If we fail to fix this, 16,000 Customs employees may be sent home. The threat is serious: if Customs cannot improve its performance and the public remains dissatisfied, the agency may be dissolved and replaced by SGS,” Purbaya said.

He added that President Prabowo Subianto has given full authorization to pursue a comprehensive overhaul of the Directorate General of Customs and Excise during the one-year window.

Add as a preferred source on Google +