May peace be upon you. Good afternoon, best wishes for us all. Thanks god, it
s a good opportunity for us from Directorate General of Customs and Excise to present at this bonafide event about changes weve made this far in order to become a trusted institution.
d like to ask you, maybe youve heard this term before, “bureaucracy” What crossed your mind when you hear that word? Something rigid? Something procedural? Something hierarchical? Something even annoying sometimes? What? Something rather difficult. It`s not entirely wrong. Max Webber has identified all those things about bureaucracy years ago.
That is the characteristics of bureaucracy. But Max Webber would probably define bureaucracy differently today. Furthermore, the bureaucracy which been challenged to catch up with rapid development of technology nowadays. Bureaucracy ha to be defined entirely different from what Max Webber said.
Then, if I ask you about Customs and Excise as a part of bureaucracy, you probably described it as something more horrific (than bureaucracy itself). But I
m sure its a perception about Customs and Excise in the old days. Long story short, we`re very proud when Bung Hatta Anti-Corruption Award awarding our
Directorate General, Heru Pambudi as one of Anti-Corruption figure for 2018. It`s been an honor and Mr. Heru Prambudi humbly state that Please be reminded that the award not for his works solely, but also for the collective works of every personnel of Customs and Excise.
He also said it
s been good because our Minister of Finance had got the same awards at 2008, along with Mr. Amien Sunaryadi. So, Id like to say that this award is also a deliberation to convince us all,
Boost our optimism that the image of out institution, with these uniform of Directorate General of Customs and Excise, has been changed entirely from the old perception of bureaucracy and Directorate General of Customs and Excise. At this opportunity, I
d lo to tell you all about how weve changed.
Also, about how our Directorate General get selected (to receive the award). Because it
s been quite a long journey for us, especially for the last 1,5 – 2 years. Weve been done a plenary effort to become an institution that treasured by the people because of our performance and integrity.
Just like out topic for today. It
s been quite a long journey for Customs and Excise. Weve been through the dark times, perceived as corrupt institution. But it was then. We
ve been doing our reformation since 1995. Its been the starting point with the National Products Constitutions.
We no longer use the Customs and Excise Ordinance Constitutions, that was a product of colonials
era. This is the milestone after weve been boycott, the dark time we
ve through it all. Theres a time when we have no proud in wearing this uniform.
But now, if you ask me whether I
m proud wearing this, I am very proud. Theres no need for me to talk much about it, people lining up to be part of us. Because they`re convinced that working at Customs and Excise is form of great dedication for this country.
And with the reformation program we
ve prepared the place for them to do so. 1995 is our start milestone legally, in 2002 we got assistance from abroad, World Bank, IMF and others. Therere several improvements we have done, particularly on our procedural, information technology, and several other innovations.
But still we face challenges with the fast movement of technology, we still a little bit behind. While we
re implementing one innovation, another demand following fast. So, we cant do just one time reformation, we must do it continuously. In 2006, we reviewed out constitutions.
To be more complied and accommodative towards the national and international changes. Customs and Excise is one of the institution with most complex portfolio. We wear uniform, we are armed, we`ve got special skills training. Because sometimes we act as a law enforcement, especially at the border.
If you see the on television, together with National Narcotics Institution, military force and the police, we apprehend tons of drugs smuggling attempts. But on the other side, we also collect money revenues. As we know, from national income structure, income from taxes, Customs and excise are the largest proportion.
From tax component, 25% – 27% collected by Customs and excise. It
s a quite significant number. And not many people know about this, we also assist industry with our facilities in term of fiscal and procedural. We also facilitate trading. So, its a very complicated work we do in Customs and excise.
But all of these reformation; regulations, procedures, information technologies, etc. will all be useless if we don`t enforce it with integrity from our personnel. With this strategic position, we strive for continues improvement to achieve close to ideal level, so we can do our job faithfully with optimal performance.
From 2007 and so on, we keep improving, our procedures, information technology, etc. And I want to highlight the year of 2017. On December 20th, 2016. The end of 2016. Our Minister of Finance along with her Ministry together with Directorate General of Customs and Excise launch a reformation program for Customs and excise.
We call it reinforcement, because we already reformed, so what we need is reinforcement. Although we reform continuously, but this time, expectantly is the ultimate one. This time, we aim for great impact, along with excellence integrity, to achieve a significant improvement entirely.
The difference of this last reformation with others we
ve done in the past are the emphasis on organizational culture, integrity, and governance. It doesnt mean we did not work on it before, But as it turns out, those three things are the key success factors, And we must do it now, not later.
ve advance so much (in many aspects), IT, procedurals, and others. If we dont have personnel with good integrity and governance in our, it can be very dangerous, just like a double edge blade. As I mentioned before, we have various tasks as Customs and excise.
Not only fraud in tax income, narcotics smuggling, and other violation can happen. Hopefully, Godspeed, this 4 years` program, initiate late 2016 and will end in 2020, We can be a respectful institution that we all expected, both internally and especially by Indonesian people.
Hopefully Customs and Excise become one of the bureaucracy reformation pioneers in Indonesia. These are some documentation of the Kick-off event. All the stakeholder presents to express their seriousness, The Minister of Finance along with personnel from the Ministry and also personnel of Directorate General of Customs and Excise.
There are 4 pillars as the foundation of this initiatives are reinforcement, integrity, and improvement of organizational culture and also institutional improvement. And other key area is revenue optimization. What the use of good integrity if we don
t get optimal revenue? But its the impact actually.
With all these improvements we do, our revenue should increase automatically. I
ll show you the result later. And then facilitation enforcement. Its can`t be avoided, we have to advance our trading industry to compete in this borderless world. We need to be responsive with people needs, with new technology innovations,
With the new ways of trading, included e-commerce. Customs and excise had thought about it since the beginning and we keep working on it. Next are service efficiency and surveillance effectivity. Surveilling the borders, ports and also excise tax, Such as imported liquors, tobaccos, and else, so it`s not misused.
From 4 pillars, we convert it into 19 strategic initiatives. We put it into a book, endorsed by the Minister of Finance. It
s 500 pages thick, its the guidelines of Customs and Excise Reformation Reinforcement. In the book, these 19 strategic initiatives translated into 670 action plan programs. They are not put out for nothing.
Every program has its own timeline, measured output, key performance indicator, etc. And all reported periodically, not only for internal of Customs and excise, we also report to Corruption Eradication Commission, and of course to the Minister of Finance. There also Inspectorate, Tax Supervisory Commission, and all stakeholders that we share our report to.
So, we are not doing it exclusively for ourself. If there
s a problem, like 4x4=16, we cant see that problem as it is. If this 4×4 is a paper to be fitted into a frame, if we don`t put it correctly there must some empty space.
With that, if there
s any issue, accordance with todays topic it`s governance and integrity issue, then that integrity issue is not an isolated issue. There must be ramification with other issue. Therefore, our Reformation Reinforcement Programs has a very broad dimension. This image show you how the program been prepared.
Our independent programs, our synergy programs with Directorate General of Taxation, also, our synergy programs with other institutions, capital investment, food and drugs supervisor, military, police department, and others. Included academic sector, all in one alliance. We believe that, we won`t face this problem by ourselves.
We have to be allied with anybody who wants improvement and progress. One thing for sure, that Customs and Excise had strong commitment for it. Last, here is the impacts that`s been felt by our community.
Bung Hatta Anti–>Corruption Award is one of the recognition of all the output and impact that our community been felt. I`m not going into details. From our surveillance sector, we can see the statistics of case detected and the value of items we saved has been increase significantly.
Then our Facilitation sector, now Tumang Boyolali has already facilitate by our service, so the copper craftsmen, SMEs, can export their goods. Nobody thought that Customs and Excise has been able facilitate SMEs from that remote area so they can become a copper goods exporter. Then our service, this is our latest product,
Can you guess our service level agreement (SLA) for registration? Not days, but hours. You won`t wait for days anymore. Utilizing automation, now we have hours as our SLA. If everything checked out OK, you can have your custom registration. We give out first then verified afterwards.
But of course, we develop our risk management instruments. So, with all these area that we work on simultaneously, Hopefully we
re not just improving our integrity and organizational culture but also our working methods. We dont see ourselves as a
On contrary, we have an open perceptive, we are willing to join hands with anybody in order to make a progress, especially in Customs and excise, and in order to develop a transparent, honest, and healthy economic ecosystem for the progress of our beloved Indonesia. That`s our brief explanation about Customs and Excise reformation,
Hopefully we can be prouder as a nation, proud that we are capable. This program prepared by our own Indonesian people with a strong commitment of implementation. Godspeed! And let`s join our hands together for the greatness and the progress of our country. Thank you, may peace be upon you.
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