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

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.