Indonesian Finance Minister Gives Customs Office Ultimatum to Improve

One-Year Deadline for Performance Enhancement

Finance Minister Purbaya Yudhi Sadewa has issued a stern warning to the Directorate General of Customs and Excise (DJBC), giving the agency one year to significantly improve its performance. Failure to meet this target could result in the office being frozen and potentially replaced by a private entity.

Historical Context and Potential Consequences

Purbaya revealed that he has requested a grace period from President Prabowo Subianto to reform the customs office without immediate interference. The minister warned that if performance doesn't improve, the government might consider bringing back the Swiss-based Societe Generale de Surveilance (SGS) to handle customs operations, a practice that was implemented during the New Order regime. This potential move underscores the severity of the current situation and the government's determination to address it.

Current Challenges and Reform Efforts

The DJBC has been facing significant challenges, including negative public perception and operational inefficiencies. Purbaya emphasized that the threat of being replaced is real and understood by the customs officials, stating, "Now the customs people fully understand the threat they face." The minister's statement after the meeting with Commission XI of the DPR RI highlighted the urgency of the situation and the need for immediate reform.