Tiffany & Co Import Scandal: Finance Minister Suspects Collusion with Customs

Indonesia Investigates Alleged Smuggling and Underinvoicing at Tiffany & Co. Stores

Jakarta – Indonesian Finance Minister Purbaya Yudhi Sadewa has expressed suspicion of collusion between Customs officials and Tiffany & Co. Regarding alleged import violations that led to the sealing of three Tiffany & Co. Stores in Jakarta. The minister indicated that the irregularities involve potential smuggling and underinvoicing practices.

According to Minister Sadewa, the enforcement action is intended to deter illegal imports and ensure fair competition within the domestic market. He stressed the importance of upholding customs regulations and preventing the Indonesian market from becoming a conduit for undeclared or noncompliant products. “Any illegal imports will be shut down and sealed. Everyone has to return to doing business legally,” Sadewa stated on Thursday, February 12, 2026, at The Tribrata Dharmawangsa in South Jakarta.

The sealing of the stores, located in Plaza Senayan, Plaza Indonesia and Pacific Place, followed reports from the Directorate General of Customs and Excise (DJBC) Jakarta Regional Office indicating that the jewelry store was unable to provide the necessary Import Notification Form (PIB) as proof of legal import. This raised concerns about potential smuggling, according to Sadewa.

“Customs asked them how this was happening? Most of the goods that entered didn’t pay [duties]. It is suspected that What we have is smuggling or not, they were asked to show the trade form, the import form, everything, they couldn’t show it. So, those goods came from Spain,” Sadewa explained on Saturday, February 14, 2026.

While not all goods were confirmed as smuggled, Sadewa revealed evidence of underinvoicing – a practice where importers declare a lower value for goods to reduce tax obligations. “Some are completely smuggled, some only paid under the invoiced value. It’s all visible. Some people also told me that this should be handled by the police, but it turns out it’s Customs and Tax [officers], and they will be combined,” he said.

The Finance Minister also opened the possibility of internal collusion within Customs, suggesting that some of the implicated officials may be long-serving employees. He indicated plans for a reshuffling of personnel, placing trusted officials in strategic positions to ensure more effective enforcement. “there are [officers involved]. Later we will see who is involved, those are the old ones. These are new officials I’m putting in place after I’ve turned things around. The good ones are in front, so they dare to act. Later I’ll see what the law says,” Sadewa stated.

The move comes as Indonesia strengthens its oversight of imported goods and seeks to safeguard state revenue. The Jakarta Customs and Excise Directorate General initiated the shutdown of the Tiffany & Co. Outlets over alleged import violations, according to reports. The investigation is ongoing, and authorities are matching store inventory with import declarations to determine the extent of the violations and any further action required.

Minister Sadewa emphasized that the sealing of the Tiffany & Co. Stores serves as a warning to other businesses against engaging in similar practices. He stated that manipulating the value of goods undermines customs and tax revenue, and such actions will not be tolerated. The government aims to create a healthy and fair business climate by ensuring that all businesses operate legally and comply with Indonesian regulations.