Vol. 17 No. 3 (2024): Jurnal BPPK: Special Issue

Articles

HARMONIZED SYSTEM CODE RECOMMENDATION: A MULTI-CLASS CLASSIFICATION MODEL

Diyouva Christa Novith (Direktorat Jenderal Bea dan Cukai)

Hlm. 1-11

Abstrak

Evaluating the accuracy of Harmonized System (HS) code for goods manually is both error-prone and time-consuming. The limitation of capable customs officers with adequate knowledge in classifying goods, also the increase of cross-border transactions due to the new concept of e-commerce make customs officials face great challenges to meet its duty. This paper explored an automated approach employing machine learning algorithms to build the most suitable model to verify the correctness of description according to its HS Code. This project used historical data from declared import documents and official assessments from customs officers. Amongst the explored model, it is proved that Linear Support Vector Classification held the highest accuracy to classify HS Code based on its description. This findings contribute to the body of knowledge by providing a practical solution that leverages machine learning for HS code classification. The study's implications extend to enhancing customs operations and automation.

Kata kunci: HS Code, Multi-Class Classification, Customs, Text Mining

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Articles

LEVERAGING INDONESIA LOGISTICS ECOSYSTEM WITH FRONTIER TECHNOLOGY

Adrianta Ras Sembiring (Directorate General of Customs and Excise), Muhammad Hadiyan Ridho (Directorate General of Customs and Excise), Muhammad Adnan Nurcahyo (Polytechnic of State Finance STAN), Sandika Ilham Muhammad (Polytechnic of State Finance STAN)

Hlm. 12-28

Abstrak

A country with a good logistics system is seen through an efficient distribution process, low logistics costs, and predictable delivery times. Logistic Performance Index (LPI) is an index that describes the sustainability of a country's logistics system. To have a good LPI, Indonesia issued Presidential Instruction Number 5 of 2020 concerning Structuring the National Logistics Ecosystem (NLE) by forming an NLE team to organize Indonesia's logistics ecosystem. However, after the NLE existed, Indonesia's LPI in 2023 will actually decrease compared to 2018. As will be discussed in this research, sustainable development of the Indonesian logistics system is needed, especially the digitalization of frontier technologies. The research method used in this paper is a qualitative method with a case study approach. Researchers obtained data from various documents, academic papers, and also reports. Apart from that, researchers also directly interviewed employees on duty at NLE to obtain further information. As a result, researchers obtained areas of improvement using frontier technology in NLE. Firstly, Big data can prevent NLE from data missing problems because there are many applications connected to NLE. Then, data analytics can analyze the availability of containers and ships. Furthermore, in IoT, NLE can implement electronic customs and shipping line seals. Blockchain itself is useful in information transparency, security and traceability. Last but not least, green technology can be implemented through system and spatial planning such as maintaining a sustainable green port area. This digitalization is expected to improve logistics performance in Indonesia, especially in NLE.

Kata kunci: National Logistics Ecosystem, Big Data, Data Analytics, Internet of Things, Blockchain, Green Technology

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Articles

ENHANCING CUSTOMS RISK MANAGEMENT: UTILIZING BLOCKCHAIN TO MITIGATE ILLEGAL TRADE AND PROMOTE FAIR COMMERCE

Alfi Nabila (Direktorat Jenderal Bea dan Cukai), Muhamad Ameer Noor (Direktorat Jenderal Perbendaharaan), Rida Rohmawati (Direktorat Jenderal Bea dan Cukai), Syifa Abdurohman (Direktorat Jenderal Perbendaharaan)

Hlm. 29-45

Abstrak

Customs administrations, particularly in Indonesia, are grappling with challenges related to illegal trade activities and discrepancies in import-export data. To address these issues, this paper investigates the application of blockchain technology in enhancing customs risk management, focusing on its potential to improve traceability, security, and transparency in cross-border trade. This study explores how blockchain, with its decentralized and immutable ledger system, can reduce fraud and unauthorized alterations by providing a tamper-proof record of transactions. Additionally, the automation of compliance checks through smart contracts can streamline customs processes and improve efficiency. Through a comprehensive review of existing literature, case studies, and expert interviews, the paper illustrates the practical benefits of blockchain in customs administration. The findings suggest that blockchain can significantly enhance data integrity, transparency, and overall trust among stakeholders in the global trade ecosystem. However, the study also acknowledges the significant challenges associated with implementing blockchain, including high costs, scalability concerns, and the need for robust cross-border agreements to ensure seamless data sharing and regulatory compliance. The paper concludes by recommending a pilot project between Indonesia and Malaysia to test the feasibility of blockchain in customs risk management. The success of such a project will depend on the development of supportive regulatory frameworks, effective stakeholder collaboration, and strategies to manage implementation costs. This pilot could provide valuable insights for broader adoption of blockchain technology in customs risk management, potentially setting a precedent for other countries in the region.

Kata kunci: Blockchain, Customs Risk Management, Cross-Border Trade, Trade Transparency, Data Integrity, Illegal Trade Prevention

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Articles

INNOVATIONS IN INDONESIAN CUSTOMS: A STUDY ON IMPROVING CROSS-BORDER E-COMMERCE ON COMPLIANCE, RISK MANAGEMENT, AND ENFORCEMENT

Moh. Nafik Setyo Nugroho (Direktorat Jenderal Bea dan Cukai), Nurul Hayatun Nufus (Direktorat Jenderal Bea dan Cukai), Alfi Nabila (Direktorat Jenderal Bea dan Cukai)

Hlm. 46-61

Abstrak

The rapid growth of Cross-Border E-Commerce (CBEC) presents significant challenges for customs operations, including in Indonesia. This study explores strategies to improve Indonesian customs by examining successful practices from Japan, South Korea, and China. Using a qualitative methodology with a comparative case study approach, the research develops practical recommendations based on these countries' customs practices. It includes data from reports, academic journals, research papers, online articles, customs regulations, and descriptive data from Indonesian customs authorities. Key challenges identified include undervaluation and low tariff rates causing tax evasion, incomplete electronic data from couriers hindering document examination, regulatory loopholes exposed by the shift to CBEC goods, and transaction splitting to evade import regulations. The study highlights the need for improved monitoring systems, better identification methods, and advanced data analytics. It suggests using an Identity Number as a tracing instrument to enhance monitoring and control of consignment processes. These insights are vital for policymakers and regulatory bodies overseeing e-commerce enforcement and open avenues for future research into integrating this approach with other technologies, like blockchain, to improve transparency and traceability in international trade.

Kata kunci: Cross-Border E-Commerce, Customs Operations, Comparative Case Study, Identity Number

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Articles

VESSEL DETECTION USING YOLO AND SATELLITE IMAGERY TO ENHANCE CUSTOMS PATROL EFFICIENCY

Hanif Noer Rofiq (Kementerian Keuangan), Galuh Mafela Mutiara Sujak (Direktorat Jenderal Keuangan Negara)

Hlm. 62-78

Abstrak

Smuggling violates Customs regulations through the illegal movement of goods across national borders. While Customs sea patrols are used to prevent smuggling, Indonesia's vast waters and unpredictable conditions make constant patrolling inefficient and risky. A more precise approach is necessary. This research explores how integrating satellite imagery with deep learning can improve Customs surveillance and monitoring capabilities. Using the CRISP-DM methodology, this research examines the potential of using YOLOv8 and YOLONAS with satellite imagery collected from Sentinel-2. YOLOv8 achieved a mAP50 of 0.465 and mAP50-95 of 0.269, while YOLONAS scored 0.409 and 0.235, respectively. Evaluation using 16 satellite images reveals that YOLONAS often misidentifies non-vessel objects, such as clouds and islands, as vessels, while YOLOv8 maintains higher accuracy without these errors. Additionally, YOLOv8's performance improves with smaller map scales, as evidenced by the increased confidence values for detected objects. The results of this study can be used to enhance Customs’ ability to detect vessels in smuggling-prone areas and identify potential new smuggling routes, enabling more targeted and efficient sea patrols and thus preventing illegal activities along the Indonesian coastline.

Kata kunci: Customs, YOLOv8, YOLONAS, Satellite Imagery, Object Detection

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Articles

AUTOMATED IMAGE RECOGNITION SYSTEMS USING INSPECTION AND SCREENING COMPLEXES IN CUSTOMS CONTROL PROCESSES

Igor Aleshin (Vladivostok Customs), Elena Antonova (Russian Customs Academy)

Hlm. 79-93

Abstrak

In modern customs operations, the rapid and accurate processing of large volumes of data is crucial, particularly when analyzing images obtained from inspection and scanning complexes (ISCs). Convolutional Neural Networks (CNNs) offer a promising solution, providing enhanced image analysis and classification capabilities. This study focuses on the implementation of a CNN-based algorithm for detecting and marking the contours of firearms in X-ray images from ISCs. The CNN model, developed using the TensorFlow/Keras library, consists of 14 layers, including convolutional, pooling, and fully connected layers. The model was trained on a custom dataset of 150 annotated X-ray images, where data augmentation techniques were employed to improve robustness against geometric distortions and low image quality. The training process involved 300 epochs, and the model's accuracy was evaluated using metrics such as mAP and confusion matrices. The results indicate an 80% accuracy on validation data and an 84% accuracy on training data. The model effectively identifies firearms in diverse images but shows limitations when detecting other firearm types due to the specificity of the training dataset. This research highlights the potential of CNNs in enhancing customs control through automated image recognition, while also emphasizing the importance of diverse training data for improving generalization across different object types.

Kata kunci: Convolutional Neural Networks, Image Recognition, Customs Control, X-ray Image Analysis, Object Detection, Data Augmentation

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Articles

TOWARDS AN OPTIMIZED DATA PIPELINE IN INDONESIAN CUSTOMS AND EXCISE FORENSIC DATA ANALYTICS: A PRACTICE-AS-RESEARCH INQUIRY

Agung Darono (Pusdiklat Pajak), Aldi Pratama (Pusdiklat Bea dan Cukai)

Hlm. 94-106

Abstrak

Forensic data analytics is a method of applying data analytics in digital forensics. This research uses the practice-as-research method to show how to effectively establish an optimized data pipeline for forensic data analytics in support of implementing digital forensics in Indonesian customs and excise law enforcement. The study offers insights into how general principles, processes, and phases in digital forensics can be applied to Indonesian customs and excise law enforcement, with a focus on developing data pipelines in forensic data analytics. It also suggests practices to improve the implementation of customs and excise digital forensics, such as issuing a detailed guide for implementing digital forensics, enhancing information technology infrastructure, and creating a case management system that supports the forensic data pipeline. These efforts are aimed at upholding the chain of custody principle in digital forensics throughout the customs and excise law enforcement process.

Kata kunci: Analytics, Customs, Data Pipeline, Excise, Forensic, Technology Stack

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Articles

ENHANCING CUSTOMS SURVEILLANCE WITH REMOTELY-PILOTED AIRCRAFT SYSTEM USING ANALYTICAL HIERARCHY PROCESS AS SELECTION TOOL

Edwin Iskandar Dinazar (Direktorat Jenderal Bea dan Cukai)

Hlm. 107-118

Abstrak

One of the roles of Directorate General of Customs and Excise -which is positioned under the Ministry of Finance- is to protect the community from illegal flow of goods aka smuggling, into and out of the country. By minimizing smuggling, D.G.C.E. could also save potential revenue loss by applying fine and establishing healthier trade for legal commodities. To support their task in combating smuggling, D.G.C.E. officers are trained in using firearms, and equipped with X-ray scanner, narcotic detectors, K-9 units, chemical laboratory, and patrol vessel ranged from 7m to 60m in length. Previously, D.G.C.E. also operated several aircraft as aerial asset to detect potential smuggling activities. With the last aircraft rendered inoperative at the early 2000s, D.G.C.E. are now practically have zero aerial asset. To keep up with the ever-increasing smuggling threat, D.G.C.E. must consider to implement aerial asset to support its land and marine patrol unit in detecting potential smuggling activities, especially at the border. Advancement in Remotely-Piloted Aircraft System (R.P.A.S.) technology could serve as the basis of D.G.C.E.’s future aerial asset for surveillance at the border. This study aims to help D.G.C.E. in choosing the best R.P.A.S. option in the market to fulfill their need. Using Analytical Hierarchy Process (A.H.P.) to aid the decision-making step and weighted average scoring to determine the urgency of six main criterion, the study compares five available options from local and foreign manufacturers. This research concludes that the Alternative A is the best choice, combining relatively affordable price and maintenance cost with decent performance and sensor.

Kata kunci: Directorate General of Customs and Excise (D.G.C.E.), Customs Surveillance, Community Protector, Border Patrol, Remotely-Piloted Aircraft System (R.P.A.S.)

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Articles

STREAMLINING INDONESIA’S NATIONAL LOGISTICS ECOSYSTEM: A STRATEGIC INTEGRATION OF CUSTOMS AND CROSS-SECTOR STAKEHOLDERS USING DISRUPTIVE TECHNOLOGY FOR SMART TRACK AND TRACE LOGISTICS SYSTEM

Achmad Wahyudi (Direktorat Jenderal Bea dan Cukai), Alfi Nabila (Direktorat Jenderal Bea dan Cukai), Desty Prilianingrum (Direktorat Jenderal Perimbangan Keuangan)

Hlm. 119-132

Abstrak

Indonesia's logistics sector faces significant challenges due to fragmentation and poor integration among the logistics services provided by various government agencies. The National Track & Trace Logistics System is vital to the National Logistic Ecosystem, as it enhances distribution efficiency, advances digitalization, and promotes collaboration between the public and private sectors. The purpose of this study is to identify and explore the potential of integrating the National Track & Trace system with multiple digital technologies, creating a cohesive and collaborative platform for enhanced operational efficiency. The study used literature review in qualitative research, with a secondary data collection method. The finding shows that by integrating API, QR codes, and RFID technologies, and incorporating these three technologies into the NLE, the global logistics supply chain can be developed through a national track and trace system. The system also can enhance efficiency, transparency, accountability, and overall quality in Indonesia’s logistics infrastructure. The goal can be achieved by building close collaboration between the government and the private sector, enhancing the possibility for investment in advanced technology, developing the blueprint for the national track and trace system, and creating strong regulations for the implementation procedure.

Kata kunci: Logistics, System, Digital, Track and trace, National logistics ecosystem

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Articles

AI-ASSISTED TAX AUTHORITIES: LEVERAGING LLM, NLP, AND ML FOR EFFICIENT TAX AUDIT REPORTING

Muhammad Sukri Ramli (Royal Malaysian Customs Department)

Hlm. 133-144

Abstrak

Traditional compliance assessment is time-consuming and labour-intensive, hindering tax authorities' productivity. This paper explores how Artificial Intelligence (AI), specifically Large Language Models (LLMs), Natural Language Processing (NLP), and Machine Learning (ML), can revolutionize tax audit reporting. We demonstrate how these technologies can streamline data analysis, identify discrepancies, summarize documents, and even automate report generation, ultimately enhancing efficiency and accuracy for tax authorities’ compliance departments.

Kata kunci: Tax Auditing, Artificial Intelligence (AI), Large Language Models (LLMs), Natural Language Processing (NLP), Machine Learning (ML)

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Articles

MANAGING INTERNATIONAL CARBON TRADING THROUGH COLLABORATIVE GOVERNANCE (INDONESIAN CONTEXT)

Agustinus Imam Saputra (Direktorat Jenderal Pajak), Moh Abrori Akbar (Directorate General of Taxes), Supriadi C.H. Tambunan (Directorate General of Taxes)

Hlm. 145-155

Abstrak

The launch of the carbon market (IDX Carbon) in Indonesia in September 2023 is expected to encourage economic actors to transition towards green development. In this market, industry players have the opportunity to sell their carbon credits, while producers with excess carbon emissions can purchase them. There is potential for internationally certified carbon units to be traded between countries in the future. This study outlines the measures the government can take to engage in international carbon trading and the benefits derived from these global transactions. The author utilized a qualitative approach and content analysis method in this study. The research revealed the potential for state revenue from international carbon trade transactions. The government can utilize tax instruments to ensure that available carbon credits meet domestic needs before being sold to other countries. A monitoring system of international carbon trading is suggested involving all stakeholders with collaborative governance principles. Ultimately, this study aims to provide insights for monitoring international carbon trade in Indonesia.

Kata kunci: carbon credit, carbon market, carbon trading

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Articles

THE ECONOMIC ASSESSMENT OF BLOCKCHAIN IN WORLD’S LOGISTICS AND SUPPLY CHAIN

Chayuth Yongchaicharn (Royal Thai Customs)

Hlm. 156-163

Abstrak

Over the past few decades, the global trade and supply chain management environment has become increasingly complex. Integrating new technology is essential to support these trends of growth and complexity. The customs clearance process is a potential bottleneck in the trade environment and the nation’s supply chain management due to its intricate operations, numerous documents, and lack of transparency. These factors lead to inefficient time management, the risk of missing documents, and financial handling inefficiencies. This research explores the potential of integrating Blockchain technology, using smart contracts as the underlying infrastructure, to enhance the overall efficiency of the customs clearance process. The findings demonstrate that implementing Blockchain technology can improve the system's productivity by enhancing time management, reducing the likelihood of document mishandling, and improving financial flow. Additionally, the research indicates that the initial implementation cost significantly impacts the break-even point for Blockchain adoption. At the same time, increases in yearly maintenance and platform fees have a minimal effect and can be offset by improvements in other areas, such as enhanced security.

Kata kunci: Blockchain, Smart Contract, Customs clearance, Supply Chain Management

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Articles

HARNESSING FRONTIER TECHNOLOGIES TO ENHANCE CUSTOMS SURVEILLANCE AND MONITORING ON BONDED ZONE FACILITY IN INDONESIA

Javas Hasthoka Amodha (Direktorat Jenderal Bea dan Cukai)

Hlm. 164-175

Abstrak

Rapid advancement of frontier technologies offers significant potential for enhancing customs surveillance and monitoring systems, especially within bonded zone facilities. Therefore, Utilization of Frontier Technologies also bring another disruptive side-effect and significant issues during the operation. This paper will examine the pros and cons of applying new cutting-edge technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), drones, and robot on customs operations in Indonesia, benchmarking from another WCO countries. This paper will also provide several recommendations to Indonesian bonded zones practices, which currently face challenges such as inefficiencies, security vulnerabilities, and a lack of transparency. This paper employs comprehensive review of existing literature on customs surveillance, monitoring systems, and the significant role of bonded zones in Indonesia. Subsequently, explores how IoT is able to use real-time data collection and monitoring, AI able to enhance predictive analytics and anomaly detection, drones and robots are able to offer versatile surveillance capabilities, hence all the frontier technologies are able to improve decision-making processes taken by Customs Authorities. Through profound analysis of current practices, particularly on implementing into Indonesian bonded zones systems, this study will outline a framework for integrating these technologies. It also presents case studies of successful utilization in another WCO countries, demonstrating the evolutionary prospect of these technologies. The discussion also examines the benefits of harnessing frontier technologies, encompassing improved efficiency, accuracy, security, transparency, and cost-effectiveness. In conclusion, applying frontier technologies can greatly enhance the current practices of customs surveillance and monitoring in bonded zone facilities in Indonesia, leading to better efficiency and security in trade and logistics.

Kata kunci: Frontier Technologies, Indonesian Customs, Bonded Zone Facility, Customs Surveillances, Customs Monitoring

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Articles

BLOCKCHAIN AS DIRECT SERVICES TO COMMUNITY AND REVENUE GATEKEEPER

Prima Ageng Nugraha (Politeknik Keuangan Negara STAN)

Hlm. 176-182

Abstrak

Blockchain, which is one of the latest discoveries in the field of IT networks, is slowly but surely entering every aspect of modern human activity. While this is probably the most well-known use of blockchain in the world of cryptocurrencies. The massive progress of cryptocurrencies is due to the advantages offered by blockchain technology. That is just one aspect, while there are still many other aspects that have not been utilized from this blockchain technology, one of which is its use in international trade. The buying and selling of electronic data between countries is inevitable, but unfortunately there has been no adequate supervision effort in Indonesia over electronic data trading. As with conventional cross-border trade, electronic data trading also has the potential for danger if not supervised, even state revenues that can be obtained can be lost without supervision. Therefore, through this research, it is hoped that a concept of supervision can be found that can be carried out on cross-border electronic commodity trade. This research was conducted using a descriptive analytical method through a review of the latest journals on blockchain and international trade supervision. The results of this study are that there is potential for the use of blockchain as a tool for monitoring international trade in electronic commodities. By utilizing blockchain, the benefits obtained include more effective and efficient supervision, there is a basis for imposing levies on international trade in electronic commodities that occur, assisting copyright protection efforts, and also preventing harm caused by electronic commodity transactions to the community.

Kata kunci: Blockchain, Customs, International Trade, State Revenue, Copyrights

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Articles

ENHANCING WILDLIFE TRADE ENFORCEMENT IN MALAYSIA: A REVIEW OF THE ROLE OF DISRUPTIVE TECHNOLOGIES AND MULTI-STAKEHOLDER COLLABORATION

Mohd Hairul Haji Mohd Salleh (Royal Malaysian Customs Department)

Hlm. 183-191

Abstrak

The illegal wildlife trade (IWT) poses a significant threat to biodiversity and ecosystems globally, with Malaysia being a crucial transit point for traffickers due to its rich biodiversity. This review examine the integration of disruptive technologies and the role of multi-stakeholder collaboration in enhancing the management and enforcement of wildlife trade regulations in Malaysia. Three main steps outline the methodology used in this review paper including search strategy, inclusion and exclusion criteria, and selection process. Key technologies such as DNA barcoding, blockchain, drones, RFID, automated detection systems, and AI-based cyber surveillance are examined for their potential to improve tracking, monitoring, and enforcement capabilities. The review highlights successful case studies and identifies the challenges in implementing these technologies, including complexity, cost, and the need for capacity building. Moreover, it underscores the importance of collaborative efforts among government agencies, NGOs, local communities, and international bodies to effectively combat IWT. By addressing these knowledge gaps and leveraging both technological and collaborative strategies, Malaysia can enhance its capacity to protect its biodiversity and contribute to global conservation efforts.

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Articles

APPLICATION OF BLOCKCHAIN TECHNOLOGY IN WASTE REGULATION IN FOREIGN TRADE

Yuriy Ivanovich Somov, Yuliya Sergeevna Tishchenko (The Russian Customs Academy, Lubertsy, Russia)

Hlm. 192-199

Abstrak

Blockchain technology presents a transformative approach to the regulation of waste in foreign trade. Its decentralized and transparent nature can enhance the tracking and management of waste resources, thereby improving compliance with environmental standards. By utilizing blockchain, stakeholders can ensure the traceability of waste from its origin to its final destination, reducing the risk of illegal dumping and enhancing accountability among participants in the waste trade.  Moreover, smart contracts built on blockchain can automate processes and enforce regulations in real-time, minimizing human error and increasing efficiency. This application could streamline documentation and compliance checks, making it easier for customs authorities to monitor transboundary movements of waste.  The integration of blockchain in waste regulation can also foster greater collaboration among international entities, creating a unified framework for reporting and managing waste trade activities. This could lead to more informed decision-making and improved policy development across borders, ultimately supporting the goals of a circular economy and sustainable development.

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Articles

PROFESSIONALISM AND INTEGRITY IN INDONESIA CUSTOMS AS PART OF COORDINATED BORDER MANAGEMENT (CBM) IMPLEMENTATION

Nur Achmad (Inspektorat Jenderal Kementerian Keuangan)

Hlm. 200-209

Abstrak

According to WCO (2009), CBM is a border management approach that involves public agencies working together in a coordinated manner to achieve common goals. As part of CBM, Customs Administration need to manage their activities to ensure efficient and effective processes and procedures in accordance with applicable provisions for travelers, goods, and means of transport crossing international borders.  Customs institutions around the world and also in Indonesia play an important role in carrying out the mission of facilitating industry and trade, collecting revenue, and protecting the community. These tasks need to be carried out professionally and with integrity. Professionalism and integrity are prerequisites for Customs institutions to function properly. Lack of integrity and the persistence of corrupt behavior by its employees will weaken public trust in the government. Unprofessional implementation of tasks will limit the capacity of Customs Administration to achieve its mission effectively. The subject of this study is the efforts made by Indonesian Directorate General of Customs and Excise (DGCE) in upholding professionalism and integrity. The purpose of this study is to detect and analyze the current conditions and identify appropriate solutions. To achieve the research objectives, qualitative data collection methods are used. The results of this study provide an overview of the problem of corruption in the customs sector and explain several alternative solutions to the problems of professionalism and integrity. Efforts to strengthen and improve integrity implemented by DGCE need to be implemented jointly by the leaders and employees of DGCE and supported by relevant stakeholders.

Kata kunci: Coordinated Border Management (CBM), Customs Administration, Professionalism, Integrity, Indonesia customs, Corruption

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Articles

ENGAGING THE TRADE COMMUNITY: BUILDING TRUST AND TRANSPARENCY IN CUSTOMS OPERATIONS

Farah Nor Aishah Rosli (Royal Malaysian Customs Department, Malaysia)

Hlm. 210-220

Abstrak

This paper explores the critical role of trust and transparency in enhancing compliance and cooperation within customs operations. Utilizing a conceptual framework for institutional trust, the study investigates how customs authorities can build trust through competency, integrity and fairness. Additionally, the paper examines the impact of both trust and transparency on compliance and cooperation among stakeholders, drawing on existing literature that supports these relationships. Through a combination of literature review and case studies, this research aims to identify key factors that influence trust and transparency in customs operations and propose strategies for customs administrations to foster a more collaborative and compliance trade environment The findings will provide valuable insights for policymakers and customs authorities in implementing practices that enhance trust and transparency, ultimately leading to improved compliance and efficiency In customs operations.

Kata kunci: Customs Operations, Trust Building, Transparency, Compliance, Institutional Trust, Stakeholder Engagement

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Articles

TRANSPARENCY AND PUBLIC PARTICIPATION: BUILDING PUBLIC TRUST IN DIRECTORATE GENERAL OF CUSTOMS AND EXCISE

Krizna Dwiyan Amarullah (Direktorat Jenderal Bea dan Cukai), Haekal Muda Ralial (Kementerian Luar Negeri), Chandra Hadyanto (Direktorat Jenderal Bea dan Cukai)

Hlm. 221-231

Abstrak

Widespread negative sentiments from the public towards the Directorate General of Customs and Excise (DGCE) in 2024 and recent cases of corruption and money laundering further pejorate the low level of trust the public has for the institution. Academics and international institutions suggested that transparency, particularly deliberative transparency, can increase accountability and foster public trust towards the government. Unfortunately, the DGCE appears to underutilize strategies and tools available for enhancing transparency, which in the long turn may undermine the nations’ foreign trade facilitation efforts. Our desk research provides 5 examples of public consultation programs from Australia, The United Kingdom, Singapore, New Zealand, and The European Union. We analysed the examples using the democracy cube (Fung, 2006) and compared them with our current findings in DGCE. The democracy cube can help DGCE determine the suitable strategy to achieve deliberative transparency through public participation/consultation. After several considerations are made, this paper recommends that DGCE adopt public consultation on a small scale as a pilot project.

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Articles

BLOCKCHAIN TECHNOLOGY FOR CUSTOMS MODERNIZATION: CHALLENGES AND OPPORTUNITIES

Kholiq Abdullah (Kementerian Keuangan)

Hlm. 232-242

Abstrak

This paper explores the potential of blockchain technology to modernize customs systems, addressing operational inefficiencies and enhancing transparency, security, and real-time transaction processing. By decentralizing transaction records and ensuring data immutability, blockchain offers innovative solutions for challenges such as document verification, fraud prevention, and global supply chain monitoring. However, the adoption of blockchain in customs systems faces several obstacles, including integration complexities with existing infrastructure, scalability issues, and concerns over data security and privacy. Additionally, alignment with international regulations and standards is crucial for successful implementation. This study provides strategic recommendations, classified into short-term, medium-term, and long-term actions, to guide the adoption process. These include launching pilot projects, establishing legal frameworks, and investing in continuous system upgrades. The findings highlight blockchain’s potential to streamline customs operations, improve efficiency, and foster trust in international trade processes.

Kata kunci: Transparency, Public participation, Trust, Democracy cube, Trade facilitation

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Articles

ILLICIT TRADE AND ITS IMPLICATIONS ON NATIONAL SECURITY: AN ASSESSMENT OF SEME-KRAKE JOINT BORDER POST

Babatunde Olomu (Nigeria Customs Service), Sanusi Tasiu Saulawa (Nigeria Customs Service), Sadiq Misbau Murtala (Nigeria Customs Service)

Hlm. 243-256

Abstrak

This study examines the implications of illicit trade on national security, focusing on the Seme-Krake Joint Border Post between Nigeria and Benin Republic. Employing network theory as a theoretical framework, the study comprehensively analyzes the complex interplay between illicit trade and border security in this region. Qualitative research methods were used to achieve the study's objectives, including interviews with border officials, document analysis, and network analysis. The findings revealed the significant threat posed by illicit trade to Nigeria's national security, highlighting the prevalence of various illicit goods, the challenges faced by border agencies, and the broader implications for economic stability, public health, and political security. The study concludes by recommending enhanced cooperation between border agencies, increased investment in border infrastructure, and the implementation of advanced technologies to combat illicit trade effectively.

Kata kunci: Illicit Trade, Border Security, National Security, Seme-Krake Joint Border Post, Transnational Organized Crime

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Articles

ENGAGING THE TRADE COMMUNITY: BUILDING TRUST AND TRANSPARENCY IN CUSTOMS OPERATIONS

Dinma Nmaele-Afam (DNA Imprints)

Hlm. 257-262

Abstrak

"Transparency is the single most important ingredient in the recipe for success because it builds trust." —Denise Morrison. In the realm of business and governance, transparency is not just a value but a vital ingredient for success. Transparency means being open and honest, while trust is the firm belief in the reliability and integrity of someone or something. You cannot have one without the other—transparency paves the way for trust, and trust is earned through the currency of transparency. This paper delves into the critical interplay between trust and transparency within customs operations and their significance in engaging effectively with all members of the trade community. By examining strategies to cultivate robust communication and collaboration between customs authorities and traders, the study seeks to illustrate how transparency can transform customs operations. The focus is on demonstrating how customs authorities can create an environment where laws, regulations, and policies are not only accessible but are uniformly enforced. Consistent application of regulatory practices can mitigate misunderstandings and build a more cooperative relationship with the trade community.

Kata kunci: Transparency, Trust, Customs operations, Trade community engagement, Regulatory consistency

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Artikel (22)