Indonesia's Customs and Excise Directorate Faces Potential Dissolution

Finance Minister's Ultimatum

Finance Minister Purbaya Yudhi Sadewa has issued a stern warning to the Customs and Excise Directorate (DJBC), threatening to dissolve the agency if it fails to demonstrate significant improvement within the next year. This dramatic statement comes as the government grapples with issues of rampant corruption, illegal imports, and under-invoicing that have long plagued the customs agency.

Economic Rationale Behind the Threat

Economist Bhima Yudhistira of the Center of Economic and Law Studies (CELIOS) strongly supports the minister's stance. According to Bhima, the customs agency has been ineffective in curbing illegal imports and under-invoicing practices that significantly harm Indonesia's domestic industries. Bhima argues that the minister's warning is well-founded and necessary to address these chronic issues.

Potential Consequences

The potential dissolution of DJBC would have far-reaching implications. With approximately 16,000 employees at risk of being laid off, the move represents a significant restructuring of the country's customs operations. While some experts suggest that privatizing customs services, as was done during the New Order era, could be a viable alternative, this would require careful consideration of its own set of challenges and consequences.

Path Forward

The minister's warning is seen as a wake-up call for the customs agency to urgently address its performance and integrity issues. The next year will be critical in determining whether DJBC can implement the necessary reforms to avoid more drastic measures. The situation highlights the government's commitment to tackling corruption and inefficiency in state institutions.