Finance Minister Feels Insulted by President’s Criticism of Tax and Customs Performance
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Indonesia’s Finance Minister Purbaya Yudhi Sadewa expressed feeling slighted by remarks made by President Prabowo Subianto during a cabinet retreat on january 6, 2026, in Hambalang, West Java. The President’s comments questioned the integrity of the Directorate General of Taxes (DJP) and the Directorate General of Customs and Excise (DJBC), specifically regarding issues of under-invoicing and tax avoidance.
President Questions Tax and Customs Integrity
During the retreat, President Subianto reportedly questioned whether he could continue to trust the information provided by tax and customs officials. While not directly addressing Minister Sadewa, the President’s remarks were perceived as a direct criticism of the DJP and DJBC’s performance. Minister Sadewa stated, “He said, are we going to wont to continue to be tricked by tax and customs (people)? That was a message to me from the president, even though he didn’t look at me, he was excited to come here.”
Under-Invoicing and Tax Avoidance Concerns
President Subianto specifically highlighted the ongoing problem of under-invoicing,where importers intentionally undervalue goods to reduce their tax burden. He also raised concerns about tax avoidance schemes allegedly involving employees within both the DJP and DJBC. According to Minister Sadewa, “There is still a large practice of under-invoicing wich is not detected by tax and customs.”
Planned Reforms at DJP and DJBC
In response to the president’s criticism, Minister Sadewa announced plans for a thorough overhaul of the DJP and DJBC. This includes improving taxation systems, implementing enhanced monitoring technologies – referred to as “Coretaxes” – and taking disciplinary action against corrupt officials.
The reform efforts will prioritize identifying and addressing instances of misconduct within the organizations. “In 1-2 months we will improve our taxation, including promoting systems…it truly seems there are still some [individuals engaging in illicit activities], so we will fix it,” stated Minister Sadewa. Regarding customs officials, the Minister indicated a strict performance review: “For customs, the threat is clear from there, that if it can’t be done (repairs) in a year, they will really be sent home. So I will save them so that the 16 thousand people continue to work, but those who work well, we will send home those who are bad, I will box them properly.”
Key takeaways
- President Prabowo Subianto publicly questioned the integrity of Indonesia’s tax and customs agencies.
- Finance Minister Purbaya Yudhi Sadewa felt personally slighted by the President’s remarks.
- Under-invoicing and tax avoidance practices remain meaningful concerns.
- A comprehensive overhaul of the DJP and DJBC is planned, including personnel changes and system improvements.