Finance Minister threatens one-year deadline as AI adoption accelerates anti-corruption overhaul
Indonesia’s Finance Minister Purbaya Yudhi Sadewa has issued a stark warning: the Directorate General of Customs and Excise could be frozen and its 16,000 employees sent home if it fails to restore public trust and improve performance within a year.
One-Year Ultimatum From the Finance Minister
Speaking after a working meeting with Commission XI of the DPR on November 27, Finance Minister Purbaya stressed that the public image of the Directorate General of Customs and Excise has collapsed due to a string of major scandals involving its officials. He confirmed that he had requested one year of full authority from President Prabowo Subianto to conduct an intensive internal overhaul without interference.
Threat of Dissolution and Mass Layoffs
Purbaya stated bluntly that failure to repair the agency’s reputation and improve service quality could lead to unprecedented consequences. If public dissatisfaction continues, he said Customs could be frozen entirely, putting 16,000 employees out of work. The move echoes a drastic measure taken in 1985 under President Soeharto, when the entire Customs workforce was suspended for four years amid rampant corruption.
Possible Return of SGS to Handle Customs Duties
The minister further warned that if necessary, Indonesia could reinstate Switzerland’s Société Générale de Surveillance (SGS), the same external company hired during the Soeharto era to take over customs duties. He emphasized that Customs officers now fully understand the seriousness of the threat and the need for immediate, measurable improvements.
AI Deployment to Fight Under-Invoicing
As part of the reform agenda, the Finance Ministry has begun rolling out artificial intelligence at key Customs posts. The technology is designed to detect under-invoicing, a common illegal practice where importers declare lower values to reduce duties and taxes. Purbaya said the early results are promising, with AI significantly improving data accuracy and oversight.
Reforms Already Showing Momentum
Purbaya noted that the warning has had a visible impact on internal motivation. Many Customs employees, he said, are now demonstrating a stronger commitment to transparency and performance improvement. He expressed confidence that by 2026 the agency will operate professionally and meet public expectations.
Learning From History While Preparing for Modern Challenges
The 1985 freeze serves as a stark historical reminder of what can happen when systemic corruption goes unchecked. Today’s reforms, however, combine political resolve with modern technology, potentially positioning Indonesia’s Customs authority for long-term institutional recovery.
The sweeping reform push at Bea Cukai signals a critical moment for Indonesia. With public trust at stake and the threat of mass layoffs looming, the next year will determine whether the agency emerges stronger or faces a repeat of past restructurings. The outcome will shape trade integrity, investor confidence and economic governance across Indonesia and the wider region, including Singapore’s closely linked supply chains.
Sources: CNN (2025) , Konteks.co.id (2025)
Keywords: Purbaya Yudhi Sadewa, Bea Cukai Crisis, Customs Freeze Threat, SGS Replacement Plan, AI Anti Corruption
