Finance Minister Purbaya Yudhi Sadewa has announced a series of technology-based reforms aimed at improving the performance of the Directorate General of Customs and Excise, following concerns over illegal trade and declining public trust in the agency.

Speaking at the House of Representatives in Jakarta on Thursday, December 4, 2025 Purbaya said the government will install automated cigarette counting and monitoring machines directly in tobacco factories. The system is designed to ensure proper tax payment and stricter control of excise compliance. Full implementation is targeted for May or June 2026.

“We will place counting machines in the factories,” he said, emphasizing that technology will help enforce regulations more accurately.

In addition, the Finance Ministry plans to deploy artificial intelligence systems at ports nationwide to detect malpractice such as under-invoicing. According to Purbaya, AI will enhance accuracy, speed, and transparency in customs operations while reducing room for corruption.

He also vowed to conduct more frequent surprise inspections at ports. “I will make regular visits to ports to ensure they don’t play games anymore,” he said.

Dissolution

The minister previously warned that the Directorate General of Customs and Excise risks being dissolved if its performance continues to fall short. He said he has asked President Prabowo Subianto for one year to fix the institution and restore its credibility.

“I requested one year from the President to allow us to fix Customs without interference,” he said during a hearing with Commission XI of the House on November 27, 2025.

Public dissatisfaction and a series of illegal trade cases have intensified pressure on the government to act. Purbaya noted that Customs’ image has suffered significantly in the media, among the public, and at the highest levels of government.

“If we fail to improve and people remain dissatisfied, Customs could be frozen and replaced by SGS (Société Générale de Surveillance), like in the past,” Purbaya said, referring to a period under the Suharto administration when Indonesia outsourced customs oversight to the Swiss-based private inspection firm and PT Surveyor Indonesia.

The proposed reforms mark one of the most ambitious efforts in recent years to restore trust and strengthen oversight in Indonesia’s trade supervision system.