TLDRs;
- Indonesia plans AI deployment in customs to reduce fraud and improve revenue.
- Initial AI pilot expected within three months; full tax integration will take longer.
- Importers must prepare accurate documentation to avoid AI-flagged discrepancies.
- Government strengthens AI oversight amid rising AI-related scams and cyber threats.
Indonesia is taking a bold step toward modernizing its customs and tax operations through artificial intelligence.
Finance Minister Purbaya Yudhi Sadewa announced plans to deploy an AI system within the next three months to monitor potential violations and fraudulent activity in customs transactions. The system will initially be implemented at the Customs Directorate (Bea Cukai) and eventually integrated with the Tax Directorate General (DJP).
The primary goal of this initiative is to enhance operational efficiency and maximize state revenue from customs and taxation. Minister Purbaya emphasized that while initial AI deployment will begin in a few months, full integration with tax systems will take longer due to technical and operational complexities.
The project aligns with President Prabowo Subianto’s broader directive to reduce fraud, including the common practice of under-invoicing, where importers declare lower prices to minimize duties.
Pilot Program to Begin in Three Months
The AI pilot program is set to start within three months, focusing on analyzing customs transactions for anomalies and potential fraud.
However, linking the system with the tax directorate will require additional time, as operational data and stable inter-agency connections are still under development.
“The pilot will allow us to test AI analysis on real customs data and identify potential gaps in our current system,” Purbaya explained.
Officials noted that reliable operational data, along with strong coordination between customs and tax agencies, is essential for the AI system to function effectively.
Importers Must Prepare for Tighter Oversight
Businesses involved in importing goods are expected to face more stringent checks once AI tools go live. The system is designed to flag potential under-invoicing and misdeclarations, which means importers must ensure that all documentation, commercial invoices, proof of payment, and product descriptions, is accurate and complete.
Logistics providers and customs brokers are also encouraged to enhance pre-clearance checks, confirming that product classifications and declared values match across all submitted documents.
Companies can mitigate risks by appointing compliance leads to coordinate directly with Bea Cukai and by updating internal data formats to align with the AI system.
AI Oversight Amid Rising Cyber Threats
The push for AI in customs comes at a time when Indonesia faces growing threats from AI-driven scams. The Ministry of Communication and Digital (Komdigi) recently reported losses of approximately 700 billion rupiah (US$42.1 million) due to fraud schemes leveraging deepfakes, phishing, and other AI-enabled methods.
Officials highlighted the need for transparency and accountability in AI deployment, noting that the government is drafting a National AI Roadmap and collaborating with law enforcement agencies to prevent cybercrime.
Existing legislation, including the Electronic Information and Transactions Law and the Personal Data Protection Law, will be applied to hold perpetrators accountable.
Improving State Revenue Through Technology
By integrating AI into its customs and tax systems, Indonesia hopes to strengthen oversight, deter fraud, and ensure a fairer collection of duties and taxes. While full implementation will take time, the government’s focus on initial deployment and inter-agency collaboration sets the stage for a more efficient, technology-driven approach to revenue management.
This initiative reflects a growing global trend of leveraging AI to monitor financial compliance, reduce human error, and combat sophisticated fraud schemes, positioning Indonesia at the forefront of innovation in public sector technology.
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