Indonesian President Orders Customs to Complete Overhaul by September, Threatens SGS Takeover

On July 9, it was reported that Indonesian President Prabowo Subianto, through the Minister of Finance, has issued a directive to the Directorate General of Customs and Excise (DJBC), demanding a comprehensive overhaul to be completed by September 2026. Failure to comply will result in the dissolution of DJBC, with the Swiss third-party inspection agency SGS taking over all customs clearance and inspection functions. The backdrop to this reform demand is a major corruption case uncovered by Indonesia's Corruption Eradication Commission (KPK) in February of this year. The case involved high-level customs officials colluding with logistics companies to release goods by tampering with risk system parameters and accepting bribes, with the amount involved reaching 913 billion Indonesian Rupiah. Currently, Indonesia's customs inspection rate has been raised to over 25%, with 100% physical inspection implemented for sensitive product categories. From June 8 to July 31, a joint task force comprising customs, the trade ministry, police, anti-smuggling units, and the tax authority will conduct full-chain audits. They will also carry out surprise inspections in the concentrated area of overseas warehouses in Kosambi, Greater Jakarta. Regardless of whether DJBC successfully completes its overhaul and retains its functions or SGS takes over, under the backdrop of continuously strengthening anti-corruption supervision, the room for gray customs clearance and under-declaration practices like 'double clearance tax-inclusive' services will be significantly narrowed. Cross-border sellers targeting Indonesia must promptly verify the accuracy of their HS codes, prepare complete compliance documents such as Certificates of Origin, SNI, and BPOM certifications, declare goods value based on actual conditions, and allocate buffer time for potential port delays and inspections. These steps are crucial to mitigate risks of cargo detention and fines due to compliance issues. [Source: Ebrun Go. This article is generated by an automated writing robot developed by Ebrun, which uses algorithms to deliver e-commerce industry intelligence in real time. This 'dog' is still young; welcome to contact run@ebrun.com or leave a message to help it grow.]