DEN Emphasizes Customs Reform Based on Digitalization, Not the Elimination of Institutions

JAKARTA - The National Economic Council (DEN) has confirmed that there is no plan to take over or eliminate the functions of the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance in an effort to reform the governance of natural resource exports (SDA).

Through an official statement delivered by the Spokesperson for the Chairman of DEN Jodi Mahardi, he emphasized that the initiative, which was driven by the Chairman of DEN Luhut Binsar Pandjaitan, aimed to strengthen the governance of natural resources and energy exports through system integration and the use of digital technology based on Artificial Intelligence (AI).

"We emphasize that Mr. Luhut did not convey any plans for the acquisition, merger, or change in the function of the Directorate General of Customs and Excise (DJBC)," he explained in his statement, Tuesday, May 26.

According to him, the reforms carried out are focused specifically on the natural resources sector as a strategic national asset that requires tighter supervision to ensure transparency and optimization of state revenues.

"In this context, Mr. Luhut emphasized the importance of strengthening SIMBARA (Mineral and Coal Information System between Ministries/Institutions) which is currently running as one of the real examples of the success of system-based governance integration," he explained.

Through SIMBARA, cross-ministry and agency data can be connected throughout the entire mineral and coal supply chain, from production, sales transactions, payment of state obligations, to the export process.

According to Jodi, the system allows for integrated and real-time supervision so that it can increase transparency, strengthen control, and narrow the potential for state revenue irregularities and leaks.

"In the future, approaches such as SIMBARA are expected to be one of the spearheads for strengthening the governance of trade and export of natural resources through more comprehensive and real-time data integration," he said.

In addition to strengthening the system, he added that DEN also encourages the acceleration of cross-agency digitization and the application of AI technology in export supervision.

According to him, this effort is considered important to increase the effectiveness of monitoring while minimizing manipulation practices in the service process.

Jodi emphasized that modernization is part of the transformation of bureaucracy to be more efficient, adaptive, and integrated between agencies.

"This initiative is purely a manifestation of the modernization of the work system and the integration of data on the trade of natural resources and environment. Mr. Luhut always emphasizes that a nimble bureaucracy must dare to adopt cross-agency technology for national efficiency," he said.

Previously, the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan had conveyed that the export collection mechanism that has been carried out by DJBC has the potential to be integrated through the export SOE PT Danantara Sumberdaya Indonesia (DSI).

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In this scheme, DJBC continues to carry out supervisory functions with the support of an AI-based digital system.

"Customs? Yes, we'll see later Pak (Deputy Minister of Finance) Sua (Suahasil Nazara) has a toy. If it doesn't really need it, what's the point of using Customs, or its task is Customs but all AI. All based on AI," he told the media, Monday, May 25.

Luhut also assessed that reforms in the Customs and Excise Service were needed to be in line with the transformation of a more modern and technology-based surveillance system.

According to him, the business entity under BPI Danantara will only manage the trade of exports of certain natural resources commodities, while other sectors still use the current system.

"Yes, later I think the Customs Service needs to be reformed, yes why not? If it is with this (export) body. But I once again believe in the system. So this system with digitization is based on AI, I am very pro because it cannot be lied to," he explained.