Indonesia’s Finance Minister Purbaya Yudhi Sadewa has vowed to launch a sweeping crackdown on smuggling and under-invoicing practices that have long undermined state revenues and weakened domestic industries. The government, he said, already has the names of several major players involved in the illegal trade.
“Those involved in under-invoicing and smuggling—mainly in textiles, steel, and other sectors—are already on our list. We just need to decide who will be processed first,” Purbaya said at the State Palace on Tuesday (October 21), as quoted by Kumparan.
Under-invoicing refers to importers deliberately declaring lower prices on invoices to evade import duties and taxes. The Finance Ministry is still calculating the total potential recovery for state funds, but Purbaya assured that enforcement will begin soon.
“We’re still estimating the potential return to the state,” he said.
Purbaya reiterated that mass arrests will take place soon, targeting perpetrators in the textile, tobacco, and steel industries. According to BerauPost, Purbaya made clear that no one would be exempt from legal action, regardless of their political backing.
“Anyone who plays in smuggling, I’ll arrest. There will soon be massive arrests. I don’t care who’s behind them. The highest authority in this country, the President, is behind me,” Purbaya said during an event at the JS Luwansa Hotel in Jakarta.
He admitted that smuggling has persisted across various industries, costing the country billions of rupiah in lost tax revenue—equivalent to tens of millions of U.S. dollars—and threatening fair competition for local producers.
“Cigarettes first, then textiles, then steel, and then others. I’ll go after them one by one,” he added.
Purbaya emphasized that he has full political backing from President Prabowo Subianto, which he believes is crucial to dismantling the networks protecting smugglers. He also dismissed concerns from Customs and Excise officials who claimed they were powerless against well-connected actors.
Restoring Fair Trade and Boosting Growth
Beyond enforcement, Purbaya said the anti-smuggling campaign is part of a broader strategy to restructure Indonesia’s industrial base and improve the national tax ratio. Illegal imports, he noted, have not only eroded state revenue but also undermined fair competition in local industries.
Purbaya expressed confidence that consistent enforcement would accelerate economic growth in a sustainable way. “With this strategy, I believe our economy will gradually grow faster—possibly reaching nearly 6% next year and up to 8% in the years ahead,” he said.
The Finance Ministry’s upcoming actions represent one of Indonesia’s boldest economic law enforcement efforts in recent years, signaling President Prabowo’s commitment to a fairer, more transparent, and competitive economy while closing major revenue gaps.
Source: Kumparan, BerauPost, Kompas
Photo Credit: VOI
