Purbaya Yudhi Sadewa plans sweeping internal overhaul to tighten revenue controls
Indonesia’s finance leadership is preparing a bold move aimed at reinforcing discipline and accountability within one of the country’s most critical revenue institutions, signaling a sharper stance on governance as fiscal targets come under increasing scrutiny.
Major Overhaul Announced at Fiscal Forum
Finance Minister Purbaya Yudhi Sadewa has confirmed plans for a sweeping organizational overhaul within the Directorate General of Customs and Excise under the Ministry of Finance. The reform, described as drastic and unexpected, is intended to improve institutional performance and address persistent weaknesses in revenue collection.
Speaking at the Indonesia Fiscal Forum 2026 in Jakarta on Tuesday, Purbaya said the restructuring would take place within days. He stated that all officials, except the director general, would be replaced as part of an immediate corrective action.
Focus on Regional Offices and Strategic Ports
The overhaul will primarily target leadership at regional offices and officials stationed at five of Indonesia’s major ports. According to Purbaya, these officials will be placed on furlough, signaling a strong response to governance and performance concerns at key trade gateways.
He emphasized that Customs and Excise plays a critical role in preventing revenue leakages, particularly in import and export activities. Strengthening control at these strategic locations is seen as essential to safeguarding state income.
Pressure to Meet Revenue Targets
Purbaya stressed that the move is necessary to ensure the directorate intensifies its efforts to meet this year’s tax and customs revenue targets. He framed the reshuffle as a clear warning to internal stakeholders to approach their responsibilities with greater seriousness and accountability.
Despite the punitive tone, the minister acknowledged that the directorate is staffed with capable and reliable personnel. However, he noted that stronger institutional pressure is required to unlock their full potential.
Internal Promotions and Leadership Renewal
Responding to questions about replacements, Purbaya confirmed that the reshuffle would be handled internally. He explained that bringing in external officials could slow operations due to lengthy adjustment periods.
Instead, the reform will prioritize the promotion of younger or more junior officials, a move aimed at refreshing leadership while maintaining operational continuity.
Possible Expansion to Tax Directorate
Beyond Customs and Excise, Purbaya also hinted at a possible restructuring of the Directorate General of Tax. While no details were provided, the statement suggests broader reforms across Indonesia’s tax administration may follow.
The planned overhaul marks a decisive moment in Indonesia’s fiscal governance, signaling zero tolerance for inefficiency within revenue-generating institutions. For Indonesia and its regional economic partners, including Singapore, the reform could enhance transparency, improve trade facilitation, and strengthen confidence in the country’s financial administration.
Sources: EN Antara (2026) , EN Tempo (2026)
Keywords: Indonesia Customs, Purbaya Yudhi Sadewa, Tax Revenue, Fiscal Reform, Ministry Of Finance
