Indonesian Finance Minister Uncovers Potential Under Invoicing in Import Shipments

Discovery of Suspiciously Low-Priced Imports

Finance Minister Purbaya Yudhi Sadewa made a significant discovery during an unannounced visit to the Tanjung Perak Customs Office on November 11, 2025. The minister found imported goods with suspiciously low declared values, specifically a machine valued at US$7 (approximately Rp117,000). Upon further investigation, it was revealed that similar items were being sold online for between Rp40 million to Rp50 million, indicating a substantial discrepancy in the declared value ¹

Implications of Under Invoicing Practices

The practice of under invoicing, where importers declare lower values on import invoices to reduce customs duties and taxes, could lead to significant revenue losses for the state. Purbaya expressed surprise at the magnitude of the discrepancy and questioned the authenticity of the declared values. The minister's findings suggest that such practices might be more widespread than previously thought, potentially affecting various categories of imported goods ²

Government Response and Future Actions

The discovery has prompted concerns within the Ministry of Finance about the effectiveness of current customs monitoring systems. Purbaya indicated that further investigations would be conducted to determine the extent of these practices and to identify measures to prevent such occurrences in the future. The ministry is likely to enhance its surveillance and verification processes to curb revenue leakage through under invoicing.

Impact on State Revenue

The under invoicing practices, if widespread, could have significant implications for state revenue collection. With import duties and taxes being a crucial component of the national budget, any leakage in this area could affect public finances. The government is expected to take stringent measures to address this issue and ensure compliance with customs regulations.