Indonesia Signals Sweeping Customs Reform, Even Considers Outsourcing to SGS
Jakarta. Finance Minister Purbaya Yudhi Sadewa has pledged sweeping reforms at the Directorate General of Customs and Excise, warning that the agency could be frozen and replaced by Swiss inspection company Société Générale de Surveillance (SGS) if performance does not improve.
Speaking to reporters on Thursday, Purbaya said the warning is not rhetorical but a real consequence should Customs fail to regain public trust and resolve what he described as chronic inefficiency and misconduct.
“If Customs cannot improve its performance and the public remains dissatisfied, Customs can be frozen and replaced with SGS like in the past,” Purbaya said.
He noted that this scenario is not unprecedented. During the administration of former President Soeharto, parts of the Customs authority were transferred to PT Surveyor Indonesia in collaboration with SGS after widespread corruption scandals.
Purbaya reiterated that the current warning carries the same level of seriousness.
The minister said President Prabowo Subianto has granted him one year to carry out comprehensive reforms at Customs without interference. If internal restructuring fails, outsourcing certain customs functions to SGS will remain on the table.
“I have asked the President to give me time without disruption. Let me fix Customs,” he said.
Purbaya acknowledged that public sentiment toward the Customs Directorate -- currently employs around 16,000 personnel nationwide -- has sharply deteriorated, fueled by complaints from businesses and viral accusations, including claims from used clothing traders that clearing an imported container through Customs can cost Rp 550 million in illicit payments.
“The image of Customs is not good in the media, in society, and even in the eyes of the country’s highest leadership. So we must fix it seriously,” Purbaya stressed.
The Directorate General of Customs employs around 16,000 personnel nationwide. The ministry has not yet announced the reform timeline or key restructuring measures, but Purbaya signaled that underperformance will no longer be tolerated.
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