Indonesia's Customs and Excise Directorate Faces Reform

Addressing Corruption Allegations

Djaka Budi Utama, Director General of Indonesia's Customs and Excise Directorate, has committed to reforming the institution following severe criticism from Finance Minister Purbaya Yudhi Sadewa. The criticism centered on allegations of corruption and extortion within the department. Purbaya had warned of potential operational suspension if significant improvements were not implemented.

Key Areas of Reform

The planned reforms will primarily target the enhancement of human resources within the Customs and Excise Directorate. Djaka emphasized the need to eliminate the public perception that the department is prone to corruption and extortion. Additionally, improvements to equipment and overall institutional image are part of the reform agenda.

Background and Context

The decision to reform comes after increasing scrutiny of the department's practices. The Finance Minister's ultimatum marked a significant escalation in pressure on the Customs and Excise Directorate to address these issues. The success of these reforms could have far-reaching implications for Indonesia's trade and fiscal policies.