Jakarta. Finance Minister Purbaya Yudhi Sadewa on Tuesday said he has abandoned plans to dissolve the Directorate General of Customs and Excise after internal reforms at the agency showed significant progress.

The decision comes after President Prabowo Subianto recently praised the performance of the directorate, which had previously faced public criticism following a series of corruption scandals and reports of extravagant lifestyles among some of its officials.

The criticism had once grown so intense that Purbaya warned the Customs and Excise Directorate could be disbanded and its duties transferred to Société Générale de Surveillance (SGS), a Swiss-based inspection and verification company.

Purbaya said the option has now been removed following improvements within the agency.

“Previously, the president said Customs and Excise could be dissolved and its role replaced by SGS. Now that is no longer necessary because there have been improvements,” Purbaya told reporters in Jakarta.

According to Purbaya, the president recently commended both the Directorate General of Customs and Excise and the Directorate General of Taxes for their improving performance.

Finance Ministry data show that state revenue reached Rp 358 trillion ($21 billion) as of Feb. 28, 2026. The total includes Rp 245.1 trillion from taxes, Rp 44.9 trillion from customs and excise, and Rp 68 trillion from other revenue sources.

Despite the praise, Purbaya urged Finance Ministry officials not to become complacent, noting that the government still faces significant challenges in raising state revenue amid mounting pressure on the global economy.