Indonesia to Deploy Advanced AI System for Real-Time Customs Oversight

Minister Announces AI Initiative

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has unveiled plans for the rapid development of an advanced Artificial Intelligence (AI) system designed to enhance real-time oversight of customs and excise operations. The announcement, made around October 22, 2025, follows an unannounced inspection at the Directorate General of Customs and Excise headquarters. The primary objectives of this technological upgrade are to improve state revenue collection and effectively curb illegal trade activities, such as under-invoicing.

Addressing Current System Limitations

Minister Sadewa acknowledged that while the existing monitoring system is 'good,' it currently lacks the capability for real-time detection of sophisticated violations like under-invoicing. He stated, 'It's good, but not yet at the level where I can monitor under-invoicing vessels in real time. The AI is still underdeveloped.' This new AI system is specifically intended to bridge these gaps, enabling more efficient and accurate identification of trade irregularities and inflated import values.

Implementation and Strategic Integration

The Finance Minister expects the AI development process within the Customs directorate general to be completed within three months. This initiative is strategically aligned with the transformation of the National Single Window (LNSW) agency into a sophisticated IT-based intelligence center. This center will be responsible for monitoring export-import activities comprehensively. To support this, ten experts from diverse fields, including mathematicians, are slated for appointment to assist LNSW in identifying and analyzing potential revenue leakages.

Expected Impact on Revenue and Transparency

The deployment of this AI system is part of a broader government strategy to strengthen the LNSW, Customs, and the Tax Directorate, thereby reinforcing the entire revenue system 'end-to-end.' Minister Sadewa expressed confidence that the integration of AI across the ministry's databases will significantly enhance efficiency and transparency in state revenue collection. He anticipates that 'If the system is fully integrated, within a few months, customs revenue should become more efficient than it is now.' As of September 30, customs and excise revenue had reached Rp221.3 trillion ($13.2 billion), representing 73.4 percent of the annual target, with import duties totaling Rp36.6 trillion.