Reform the Main Challenge For Incoming Indonesian Customs Chief

Jakarta Globe, Dion Bisara

New Customs Director General Thomas Sugijata, left, with his predecessor Anwar Suprijadi and Finance Minister Sri Mulyani Indrawati during Thomas’s inauguration in Jakarta on Thursday. (Antara Photo)

Thomas Sugijata took the helm at the Customs Directorate General on Thursday, replacing retiring Anwar Suprijadi. He faces challenges such as limited staff, continuing bureaucratic reforms and the China-Asean free-trade agreement, which took effect on Friday.

Thomas, 58, was secretary of the directorate from 2001 to 2005 and director of auditing from 2005 to 2009 before becoming head of investigation and enforcement in April. He was also head of the team to accelerate reforms in the customs service.

The director general said his first challenge was to use his limited personnel effectively to cover the vast nation. “We only have 10,600 personnel across the country. This is relatively small number compared to Malaysia, which has 13,000. Hong Kong has 5,000 to cover its small area,” Thomas said.

“But the government has no plan to add personnel in the near future, so I have to optimize our staff and strategically allocate personnel to critical areas,” Thomas said.

Finance Minister Sri Mulyani Indrawati urged the new director general to continue the reforms she initiated in 2004 by bringing in Anwar, an outsider to the directorate.

“It’s important to continue momentum in bringing back confidence in the customs office,” said Sri Mulyani, noting that Thomas was an insider of the directorate. “The Customs Directorate General should make earning state revenue its priority.”

During Anwar’s four-year tenure, the customs office was able to meets its revenue target. This year through Dec. 23, it had collected Rp 73.78 trillion ($7.8 billion), beating its goal by 2.8 percent. Before Anwar took over, the customs office missed its target of Rp 659 billion in 2005.

“It takes courage, a lot of it, particularly to deal with big business. If we can force the big ones to comply, then small ones will follow. And as the leader I had to give an example,” said Anwar, crediting reforms for his success.

Anwar said he hoped Thomas would continue his legacy of reform. “This is not easy and there are many challenges ahead,” he said.

Anwar also warned that with the China-Asean FTA already in place, the customs office had ensure compliance from Indonesia’s trade partners. “Sometimes we only focused on imposing tariffs and overlooked their compliance. Then we were surprised when waste was imported to our country,” he said.

Anwar pursuit of reform led him in 2007 to invite the Corruption Eradication Commission (KPK) to inspect the custom office in Tanjung Priok, which led to the arrest of some of his staff.

Toto Dirgantoro, chairman of the Indonesian Exporters Association (GPEI), said the Custom Directorate General should cut down on rollover time at Indonesian ports. “I hope the new director general can improve the service. As he is from inside the directorate, he has more understanding about customs problems and can come up with more effective policies.”