Dec. 26, 2025 - In recent months, the Indonesian government has launched a high-profile overhaul of the Directorate General of Customs and Excise (DGCE), sending a clear signal that enforcement standards are being fundamentally strengthened. For exporters shipping goods to Indonesia, especially during the year-end period, compliance risks are rising markedly.

Strong political pressure accelerates customs reform

According to Indonesian media reports, Finance Minister Purbaya Yudhi Sadewa has publicly committed to comprehensive reform of the customs and excise authority. He stated that if the agency fails to significantly improve its public image and performance within one year, the government may take drastic measures, including freezing its operations and handing oversight to a third-party institution such as SGS of Switzerland.

For years, Indonesia’s customs system has faced public criticism over corruption and rent-seeking practices. Some importers have claimed that facilitating the clearance of a single container could involve illegal payments of up to IDR 550 million. Against this backdrop, the government has identified two priority targets for enforcement: undervalued export invoices and illegal goods smuggling.

“Red light period” coincides with intensified enforcement

Indonesia traditionally designates December through March as its customs “red light period.” During this time, stricter controls apply to new importers, shipments with incomplete documentation, high-risk goods, or cargo originating from higher-risk countries. Physical inspections are common, and overall inspection rates are significantly higher than the annual average.

This year, however, the red light period is unfolding under an unusually strict enforcement climate. Market feedback indicates that major ports such as Jakarta and Tangerang are conducting near 100% container inspections on several product categories, including textiles and apparel, electronics, cosmetics, ceramics, and toys. Customs authorities are paying close attention to compliance documents such as SNI certification, import quotas, and import licenses.

Declared value under close scrutiny, technology narrows discretion

Declared cargo value has become one of the most sensitive risk factors. Low-priced goods are increasingly flagged as potential cases of undervaluation or tax evasion. In some cases, exporters report that even goods declared at actual transaction value have been challenged by customs authorities.

Indonesia is also reinforcing enforcement through technology. A centralized container scanning system is scheduled to go live by March next year. Under this system, scan images from major ports will no longer be assessed locally but transmitted in real time to a central processing center in Jakarta, where compliance, valuation, and risk assessments will be made by a centralized team.

New scanning equipment has already been deployed at key ports including Jakarta, Surabaya, Semarang, and Belawan, significantly reducing local discretion and tightening valuation controls.

Implications for exporters

Under the combined impact of intensified enforcement and the red light period, exporters to Indonesia face several immediate challenges:

Higher inspection rates and longer clearance times

Stricter documentation and compliance reviews

Increased risk of valuation disputes and port charges

Greater uncertainty in delivery schedules and contract fulfillment

Exporters are advised to ensure truthful and reasonable value declarations, conduct thorough pre-shipment document checks, and factor longer clearance times into delivery commitments. Close coordination with experienced logistics providers and customs brokers familiar with Indonesian procedures is strongly recommended.

Outlook

Indonesia’s tougher customs posture should not be viewed as a short-term campaign but as part of a broader institutional reform driven by political pressure and public accountability. In this environment, compliance capability is becoming a decisive factor for successfully accessing the Indonesian market.

Exporters are encouraged to respond with prudent risk management and compliant operations, rather than relying on past practices that may no longer be viable.