Indonesia Implements New Customs Dispute Resolution Framework

Enhanced Legal Certainty through 'Damai' Pathway

Indonesia's Directorate General of Customs and Excise (DJBC) under the Ministry of Finance has introduced a significant regulatory update through Minister of Finance Regulation (PMK) No. 96/2025. This new regulation establishes a 'Damai' (peaceful settlement) pathway for resolving customs and excise disputes, marking a substantial shift in the country's customs dispute resolution framework.

Key Features of the New Regulation

The 'Damai' pathway is designed to provide a faster, more effective, and balanced approach to resolving customs and excise cases. According to Djaka Budi Utama, Director General of Customs and Excise, this mechanism is not intended to weaken law enforcement but to expedite state revenue recovery while strengthening legal certainty. The regulation achieves this by allowing certain cases to be resolved without going through the full investigation process, thus streamlining the dispute resolution mechanism.

Implementation and Implications

The new regulation is part of a broader effort to modernize Indonesia's customs procedures and enhance compliance. By providing an alternative dispute resolution mechanism, the DJBC aims to reduce the backlog of customs cases and improve the overall business environment. This move is particularly significant for businesses operating in Indonesia, as it offers a more predictable and efficient way to resolve customs-related disputes.

Conclusion

The introduction of the 'Damai' pathway through PMK No. 96/2025 represents a positive development in Indonesia's customs administration. It reflects the government's commitment to improving the ease of doing business while maintaining effective law enforcement. As this new framework is implemented, it is expected to contribute to a more transparent and efficient customs environment in Indonesia.