What has changed?
Scope and definition of audits
MOF-114/2024 introduces more detailed definitions and expands the scope of audits compared to the revoked regulations. MOF-114/2024 also adds several definitions to the terms used, such as the definitions of audit termination report/Laporan Penghentian Audit (LPA), audit termination minutes/Berita Acara Penghentian Audit (BAPA), audit questionnaire list/Daftar Kuesioner Audit (DTA), audit sampling techniques based on strategic risk and final discussion.
For example, final discussion means a discussion between the audit team and the auditee regarding a temporary audit finding list/Daftar Temuan Sementara (DTS) with which the auditee disagrees.
Planning and execution of audits
Emphasis is placed on a more structured approach to audit planning and execution, including the use of risk management for selecting audit objects.
In the audit planning stage, customs may request data or information from internal or external sources (other authorities).
Authorization of audit team
MOF-114/2024 permits the audit team to secure data or documents in places or rooms that are reasonably suspected of being related to customs or excise activities. In an investigation audit, customs are allowed to confiscate means of transportation and goods that are suspected of being related to criminal activities.
Additionally, the audit team may involve technical experts, as needed, for customs and excise audits.
Procedures and documentation of audits
MOF-114/2024 includes more detailed procedural steps for the issuance and handling of various documents, providing comprehensive guidelines on customs audit procedures.
This includes provisions regarding inspection and stocktaking of inventory, as well as data examination using audit sampling techniques based on strategic risk.
Period of audits
Unlike the previous regulations, which stipulated a two-year period for general audits, MOF-114/2024 sets the audit period for general audits at 21 months, ending in the month before the issuance of the audit assignment letter.
The detailed provisions of the audit period as stipulated in MOF-114/2024 are as follows:
- The period for general audits (audit umum) is set at 21 months until the end of the month before the issuance date of the assignment letter. For instance, if the audit assignment letter is dated 1 January 2025, then the audit period would be from 1 April 2023 to 31 December 2024.
However, the director general or designated customs and excise officer can extend the period for general audits up to a maximum of 10 years.
- The period for investigative audits (audit investigasi) and special audits (audit khusus) is determined based on needs.
Completion of audit and termination
MOF-114/2024 requires that audit work be completed within three months from the start of the audit fieldwork (subject to further extension as necessary). Previously, the deadline was three months from the date of the assignment letter.
MOF-114/2024 specifies additional conditions under which an audit can be terminated, such as in cases of force majeure bankruptcy or if the audit data is not available due to an audit by other authorities.
Compliance and enforcement of the audit process
MOF-114/2024 replaces the old regulations with stricter measures to improve compliance and enforcement. For example, the audit team can block certain activities or transactions if there are signs of customs and excise violations. They can also implement security measures to ensure compliance and prevent further violations.
How to react and mitigate
- Training and education
Provide thorough training for employees on the new regulations and compliance requirements. Make sure staff are well informed about the procedures and penalties for noncompliance.
- Documentation and recordkeeping
Keep thorough and accurate records of all transactions and activities related to customs and excise. Proper documentation helps demonstrate compliance during audits.
- Strengthen internal controls
Implement strong internal control systems to ensure compliance with customs and excise regulations. Regularly review and update these controls to address any gaps.
- Regular internal audits
Conduct internal audits to identify and fix any compliance issues before external audits. This proactive approach helps maintain compliance and avoid penalties.
- Engage compliance experts
Consult with compliance experts or legal advisers to understand the new regulations and develop effective compliance strategies.
- Risk management
Companies can identify potential risks associated with noncompliance and develop strategies to mitigate these risks by implementing preventive measures and contingency plans. Additionally, they can collaborate with customs specialists to conduct audit simulations, which help identify deficiencies and potential audit findings.
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