The Chronic Ailment of Customs Graft

February 18, 2026 | 12:36 pm

The KPK has uncovered bribery practices at customs. Regular payments are made to ensure that goods enter the country via the green lane.

WITHOUT serious efforts to eradicate bribery within the customs zones, the Ministry of Finance’s Directorate General of Customs will be even worse than the old saying: only a donkey falls into the same hole twice.

Most recently, the Corruption Eradication Commission (KPK) conducted a sting operation in Lampung and Jakarta. From this operation, KPK investigators named three businesspeople and three customs officials as suspects. The case involves Blueray Cargo, a freight forwarding company specializing in wholesale imports.

The methods used were simple. Company executives conspired with customs officials to ensure Blueray containers were placed in the green channel, exempting them from physical inspection. In fact, these imported goods should have been categorized under the red channel, meaning their release from the customs area must be preceded by a thorough physical and documentary audit.

By evading physical checks, Blueray was free to smuggle contraband, including counterfeit products and various items that failed to meet the Indonesian National Standard (SNI). Blueray paid significantly lower taxes because the contents of the containers did not match the import documents.

KPK investigators allege that Blueray high officials paid Rp7 billion to customs officials every month. This collusion went on for 10 years. These regular payments were nothing compared to Blueray's monthly revenue.

For a single container, the company charged Rp250 million—a fee that covered logistics, tax handling, and other expenses. With Blueray bringing in 2,000 containers a month, the company’s revenue hovered around Rp500 billion per month.

Blueray is not the only player in the customs area. Other freight forwarding companies are suspected of engaging in similar fraudulent practices. Their goal is obvious: ensuring smuggled goods bypass inspection.

Bribery at customs triggers a domino effect. The first victim is the domestic industry. The flood of illegal imports batters the domestic market. Because they evade taxes and import duties, these goods are sold much cheaper than local products. Domestic industries are left reeling as their products are less competitive than these smuggled goods.

The objective of applying tariffs on imported goods is to increase the competitiveness of local products, particularly for nascent industries—against the onslaught of foreign goods. The government’s policy to develop domestic industries will be rendered futile if customs oversight remains weak. Furthermore, bribery in the logistics process disrupts the distribution efficiency of raw materials required by manufacturers.

Consumers are also among the victims. For certain commodities, companies pass on the hidden costs incurred at the ports to the retail price of products. This means that consumers are forced to pay more. The prevalence of non-SNI goods, such as children's toys containing hazardous chemicals, also endangers safety and health. Ultimately, consumer choice for quality products becomes severely limited.

The repeated bribery at customs reflects the failure of bureaucratic reforms. Touted since the administration of President Susilo Bambang Yudhoyono, governance reforms have failed to persuade customs to put its house in order. Weak oversight and poor accountability provide an opportunity for officers to manipulate data and misuse their authority in a way that is difficult to detect.

It was clear from the outset that the appointment of Djaka Budhi Utama as Director General of Customs could be interpreted from the start as mere political horse-trading rather than a genuine cleanup effort. Djaka Budhi Utama is a veteran of the Indonesian Military's Special Forces Command (Kopassus), who was once convicted for the kidnapping of pro-democracy activists toward the end of the New Order. Meanwhile, Prabowo Subianto, then the commanding general of the unit, was dismissed for being held responsible.

During the Soeharto era, in 1985, the government once contracted a Swiss firm, Société Générale de Surveillance (SGS), to take over customs’ duties. The results were faster loading and unloading times, a reduction in illegal levies at the ports, and an increase in state revenue due to more transparent goods valuation. Twelve years later, that authority was fully returned to customs.

The Finance Ministry need not repeat Soeharto’s methods. Internal reforms must be carried out consistently by implementing the principles of good governance. Those who violate procedures must be severely punished. To bring this about, the Customs Directorate General must be led by a professional with a commitment to making improvements, not an old friend from Prabowo's inner circle.

Read the Complete Story in Tempo English Magazine

Bribery Codes for Customs Officers

1 hari lalu

Directorate General of Customs: Green Channel Designation Is Automatic

2 hari lalu

Jakarta Tiffany & Co. Stores Sealed for Alleged Smuggling

3 hari lalu

Indonesia-Australia Agree on Customs Mutual Recognition Agreement

9 hari lalu

KPK Names 6 Suspects Over Alleged Bribery at Customs and Excise DG

12 hari lalu

KPK Arrests Former P2 Director at Customs and Excise DG

13 hari lalu

KPK Raids Customs and Excise DG Office in Jakarta

13 hari lalu

Indonesian Customs Revenue Reaches Rp300.3 Trillion in 2025

16 hari lalu

Indonesia Begins Re-Exports of Illegal B3 Containers

17 hari lalu

Purbaya Claims Improved Performance at Customs and Excise

18 Desember 2025