Indonesia’s National Importers Association (GINSI) on Tuesday urged Finance Minister Purbaya Yudhi Sadewa to rethink his threat to suspend the Directorate General of Customs and Excise (DGCE) and hand its duties to a foreign private operator, saying such a move would disrupt trade and fail to address the root problems.
Purbaya has grown increasingly frustrated over a string of public scandals involving the DGCE, despite months of unannounced inspections at customs offices. His anger culminated in a warning that the agency could be frozen if it failed to show marked improvements within a year. He also floated the possibility of outsourcing customs functions to Swiss inspection firm Société Générale de Surveillance (SGS).
The minister acknowledged the drastic measure would put around 16,000 customs employees at risk of suspension.
Importers were quick to respond. Capt. Subandi, chairman of GINSI’s National Steering Board, said replacing the DGCE with a foreign operator would be a “misguided” solution.
“It’s not necessarily true that SGS is more credible than Customs today,” Subandi told reporters. “If there are shortcomings at Customs, they must be corrected—not frozen.”
He argued that many GINSI member companies have experienced prompt and consistent service from customs officers, particularly at Jakarta’s Tanjung Priok Port and several major ports nationwide.
“We’ve seen very fast processing—from document submission to the issuance of release permits for imported goods,” Subandi said. “Delays usually stem from technical issues, such as system errors in Ceissa, rather than deliberate obstruction.”
‘Filter the Noise,’ GINSI Tells Minister
Subandi urged Purbaya to distinguish between systemic issues and isolated misconduct. “If anyone whispers negative things about Customs, the minister must be strong in filtering that information,” he said. “If there are rogue officers, they are individuals. Improve oversight and tighten regulations instead of dismantling the institution.”
He added that no institution is free from “bad actors,” including among importers themselves. “But the vast majority are professional. Replacing Customs would create a far bigger shock to the economy than dealing with a handful of problematic individuals.”
GINSI fundamentally opposes the idea of outsourcing customs responsibilities to SGS, Subandi said, warning that it could undermine national control over trade flows.
“Not only is it not necessarily better, it also doesn’t guarantee a solution to the underlying problems,” he said.