The Ministry of Finance Drafts Regulation on Excise Violation Investigation

The Ministry of Finance ("Kemenkeu") is currently drafting a Draft Regulation of the Minister of Finance ("Permenkeu") on Amendment to Permenkeu No. 237/PMK.04/2022 ("Permenkeu 237/2022") on the Investigation of Alleged Violations in Excise Sector ("RPermenkeu"). This regulation aims to standardize the implementation of investigation of alleged excise violations across all investigative units of the Directorate General of Customs and Excise (Direktorat Jenderal Bea dan Cukai -"DJBC").

“This RPermenkeu is being prepared as a follow-up to the policy recommendation from the Financial Audit Board (BPK), which emphasized the importance of improving procedures and processes for investigating alleged excise violations,” said Unan Pribadi, Director of Laws and Regulation Harmonization III (Harmonisasi Peraturan Perundang-undangan III – “HPP III”) of the Directorate General of Laws and Regulations (Direktorat Jenderal Peraturan Perundang-Undangan – “DJPP”), Ministry of Law (“Kemenkum”), in a statement to Hukumonline.

Furthermore, the substance of the amendment focuses on the application of ultimum remedium principle during the investigation stage. This principle emphasizes that criminal prosecution should be the last resort and pursued only after all administrative measures have been exercised, thereby ensuring that law enforcement in the customs and excise sector is more proportional and fair.

“It is currently in the finalization and harmonization process across ministries,” Unan added.