Indonesia is poised to appoint convicted military officer Lieutenant General Djaka Budhi Utama to head the powerful Customs and Excise Directorate within the Finance Ministry, according to two senior sources familiar with the matter.
The expected appointment makes it the most significant civilian position granted to an active-duty military officer since President Prabowo Subianto’s administration passed a controversial March law enabling such postings, raising alarms among human rights groups and economists about the erosion of Indonesia’s democratic reforms.
Utama’s Controversial Background
Utama, a former member of the army’s notorious Special Forces “Rose Team”, was convicted by a 1999 military tribunal for his role in the kidnapping of pro-democracy activists during Suharto’s authoritarian regime.
While sentenced to 16 months imprisonment, records remain unclear whether he served time before continuing his military career. The general maintains close ties to President Prabowo, who commanded the Special Forces during the 1990s crackdowns and was himself discharged over human rights abuse allegations without formal charges.
Meanwhile, Rights organizations including Amnesty International Indonesia condemn the appointment as a dangerous precedent that violates both the spirit of post-Suharto reforms and the new law’s requirement for military retirees to hold civilian posts.
“This is clear evidence of ignorance towards victims’ rights,” said Imparsial’s Ardi Manto Adiputra, referencing the unresolved cases of forced disappearances during Indonesia’s transition to democracy.
This move follows Prabowo’s broader pattern of increasing military influence in governance, with over 9,000 active service members currently occupying civilian positions across ministries.
The Economic Reasons Why It Matters
Economists have raised eyebrows at placing a career soldier with no financial background in charge of Indonesia’s critical tax collection agency, which oversees billions in customs revenue and trade regulations.
A University of Indonesia Economist Jahen Rezki stressed the position demands specialized knowledge, asking “Shouldn’t customs be led by someone who understands its complexity?”
This particular appointment comes as Indonesia navigates tedious fiscal challenges, including implementing recent tax reforms and combating widespread smuggling operations across the archipelago.
As the Finance Ministry prepares to formalize Utama’s promotion on Friday, the controversy puts the growing tensions between Prabowo’s security-focused governance and Indonesia’s hard-won democratic institutions on the spotlight.
