Indonesia's Customs Office Faces Major Overhaul Threat

Minister Purbaya's Ultimatum to DJBC

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 demonstrate significant improvement in its performance. Speaking at the Kadin Rapimnas 2025 event held at The Park Hyatt Hotel Jakarta on December 1, 2025, Purbaya emphasized his determination to reform the beleaguered agency.

Potential Consequences of Failure

The minister made it clear that failure to meet the expected improvements could result in the agency being completely frozen, a move that would affect approximately 16,000 employees. Purbaya stated, "If they can't perform, we'll freeze them. And if frozen, it means the 16,000 Customs employees will be sent home." This statement underscores the seriousness of the situation and the minister's resolve to address long-standing issues within the agency.

Path to Reform

While expressing his willingness to take drastic measures, Purbaya also conveyed his preference for reforming the agency rather than immediately resorting to freezing it. He has requested a one-year window from President Prabowo Subianto to implement necessary changes and improvements. The minister remains optimistic that the agency's employees can still be reformed, indicating a belief in the potential for positive change within the organization.

Significance of the Reform Efforts

The potential overhaul of DJBC is significant not only for the agency's employees but also for Indonesia's broader economic and trade landscape. As a crucial component of the country's fiscal administration, the effectiveness of DJBC has far-reaching implications for revenue collection, trade facilitation, and compliance with customs regulations. Successful reform could lead to improved efficiency and integrity within the agency, ultimately benefiting the national economy.