Indonesia’s Ministry of Finance is pursuing internal reforms within its tax and customs agencies, opting for personnel reassignments over layoffs despite ongoing efforts to improve efficiency and address underperformance. Finance Minister Purbaya yudhi Sadewa confirmed Wednesday that dismissing employees is not a viable option due to potential legal challenges under civil service regulations CNN indonesia.The Ministry will instead focus on strategic job rotations, already enacting a “shock therapy” approach by replacing 34 underperforming officials and preparing to move dozens more from high-revenue positions.
Jakarta, CNN Indonesia —
Indonesia’s Finance Minister has revealed the government will not be implementing layoffs within the Directorate General of Customs and Excise (DJBC) despite ongoing large-scale reforms.
According to Purbaya Yudhi Sadewa, such a move is legally problematic and prohibited by civil service regulations, potentially leading to lawsuits.
“We explored the possibility of layoffs in taxes, finance, or within the civil service, but it’s not feasible. I asked if we could simply dismiss employees, and the answer was no. It would likely result in legal challenges at the State Administrative Court (PTUN) and we would lose. So, it was ultimately abandoned,” Purbaya said during a working meeting with Commission XI of the House of Representatives in Central Jakarta on Wednesday, February 4.
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Instead, the Ministry of Finance is opting for job rotations and reassignments as part of its internal reform efforts. Within the DJBC, approximately 34 officials in central positions deemed to be underperforming have already been replaced.
Officials described this as a “shock therapy” approach intended to improve oversight and service delivery.
Similar reforms are underway at the Directorate General of Taxes. In the near future, more than 45 tax officials will be transferred from areas considered “lucrative” to less active regions.
These rotations target employees with close ties to specific taxpayers.
“This week, we will relocate more than 45 individuals to quieter locations,” Sadewa stated.
Conversely, employees recognized for their integrity and strong performance will be placed in more strategic roles. The government hopes this approach will improve governance without violating existing legal provisions.
Sadewa also mentioned ongoing legal action against officials in various regions, including arrests made by the Corruption Eradication Commission (KPK).
He affirmed that the government will not interfere with the legal process, but will provide appropriate legal support.
“I will provide legal assistance, but I will not intervene. If someone is guilty, they are guilty. If they are not, they should not be abused,” he emphasized.
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