EDI system needs more time for full operation in RI<\/p>\n
By Riyadi<\/p>\n
JAKARTA (JP): It may take years for the planned paperless
\ncustoms service, using an electronic data interchange (EDI)
\nsystem, to become fully operational.<\/p>\n
Overseas experience says it will be at least 18 months before
\nthe EDI system can handle significant document exchange.<\/p>\n
And experts have suggested that it would take even more time
\nto implement EDI in Indonesia, which is still novice at handling
\nit.<\/p>\n
\"Looking at our current condition, it will be several years
\nbefore we can fully exchange documents electronically,\" said
\nMaman Surachman, head of the EDI project at publicly listed Bank
\nBali, one of three banks involved in Indonesia's customs EDI
\npilot project.<\/p>\n
The Directorate General of Customs and Excise plans to launch
\nthe paperless customs service as pilot projects at Jakarta's
\nTanjung Priok port and Soekarno-Hatta airport on April 1, when
\nthe 1995 customs law comes into force.<\/p>\n
The plan will only succeed with commitment and support from
\nall participants, with the government playing a pivotal role of
\nsupport and encouragement.<\/p>\n
Experts have warned that no party in Indonesia's trading
\ncommunity has any practical EDI experience.<\/p>\n
It won't be easy for them to subscribe to EDI, adapt their
\nexisting operations, standards and computer systems or train
\ntheir staff.<\/p>\n
Many of them -- notably local shipping companies, importers,
\ntextile-related firms and auto firms -- have openly expressed
\ntheir reservations abut joining the system.<\/p>\n
Most of them were reluctant to invest much in EDI
\ninfrastructure while they were unconvinced of its benefits.<\/p>\n
Subsidized<\/p>\n
To encourage more companies to enter the EDI program, the
\ngovernment has decided to subsidize their EDI operations for one
\nyear.<\/p>\n
Subsidies include the provision of translator software,
\nimporter modules, training, hardware installations and one-year
\nfree-of-charge traffic use.<\/p>\n
Traffic charges include monthly fees of Rp 100,000 (US$41.60),
\nvolume usage fees of Rp 550 for 1,000 characters an address every
\ndocument, data storage fees of Rp 550 for 1000 characters a day
\n(counted after five days), interconnection fees of Rp 550 for
\n1,000 characters and fax gateway fees of Rp 550 for 1,000
\ncharacters (excluding telecommunication fees).<\/p>\n
EDI bring substantial benefits to organizations which
\nimplement it. EDI reduces delays caused by postal paper chains
\nand avoids re-keying of data, thereby saving time and reducing
\nerrors.<\/p>\n
EDI also cuts the costs of creating, recording and storing
\npaper documents and records. It facilitates shorter lead times
\nand reduces administrative costs.<\/p>\n
Many businesses have chosen EDI as a fast, inexpensive and
\nsafe method of sending purchase orders, invoices, shipping
\nnotices and other frequently used business documents.<\/p>\n
EDI has been successfully used for trade facilitation in some
\ncountries, covering transactions between importers, exporters,
\ncustoms, banks, ports, shippers, freight forwarders, agents and
\nbrokers.<\/p>\n
The implementation of EDI in Indonesia is expected to help
\nexpedite the clearance of imported goods from customs areas when
\nthe combination of on-arrival inspections of imports and post-
\nentry audits are enforced from April 1.<\/p>\n
The system is designed to reduce personal contact between
\ncustoms officials and businesspeople and consequently cut red
\ntape and minimize the possibility of collusion between officials
\nand businesspeople.<\/p>\n
But mixed experiences of EDI systems, their introductory
\nproblems in some countries and their failure in countries like
\nHong Kong have underscored the need for careful planning and
\nsufficient time for preparations.<\/p>\n
It is not necessary for a sender and receiver to have
\nidentical document processing systems for EDI. When a document is
\nsent, EDI translation software converts its format into an agreed
\nstandard. When the document is received the EDI translation
\nsoftware automatically changes the standard format into the
\nformat of the receiver's document processing software.<\/p>\n
A United Nations body has developed EDI standards, called
\nUN\/EDIfact (the United Nations Rules for Electronic Data
\nInterchange for Administration, Commerce and Transport).<\/p>\n
EDI standards define a set of \"message types,\" which generally
\ncorrespond to familiar physical documents.<\/p>\n
For trade facilitation, such standards would include customs
\ndeclarations (CUSDEC), customs responses (CUSRES), conveyance
\nreports (CUSREP), cargo manifestos (CUSCAR), payment
\nauthorizations from agents (PAYORD), pre-credit advice from agent
\nbanks to customs (CREADV) and invoice messages (INVOIC).<\/p>\n
These standards are broad and complex, and often vague. Within
\na single EDI community, a simplified usage and agreed
\ninterpretation must be agreed before implementation. Typically
\nthis is done by a consultative body representing parties in an
\nEDI community.<\/p>\n
The Asia EDIfact Board has also been established to guide,
\nstimulate and promote the development and use of UN\/EDIFACT
\nstandards in its Asian member countries or economies.<\/p>\n
The board's members include China, India, Indonesia, Iran,
\nJapan, Malaysia, the Philippines, Singapore, South Korea, Sri
\nLanka, Taiwan and Thailand.<\/p>\n
But only Singapore and Japan seem to have fully implemented
\nthe system for customs or trade.<\/p>\n
It took Singapore more than four years to set up an
\noperational EDI system in 1989. This was achieved with
\nsubstantial commitment and backing from the government, superb
\ninfrastructure, a compact geographical zone and a disciplined and
\neducated trade community.<\/p>\n
Difficult<\/p>\n
It will be difficult for less-developed and more complex
\ncountries like Indonesia to match Singapore's achievements in the
\nforeseeable future but the Singaporean model does offer
\nchallenging directions and possibilities.<\/p>\n
Indonesia, in its effort to implement EDI for trade
\nfacilitation, set up advisory and executive teams only last year
\nto implement EDI customs message and integration guidelines.<\/p>\n
The advisory team is headed by Director General of Customs and
\nExcise Soehardjo Soebardi and includes representatives from the
\nministries of finance, transportation, industry and trade, the
\ncentral bank and the Indonesian Chamber of Commerce and Industry.<\/p>\n
The executive team is headed by Eddy Abdurrachman, the chief
\nof the directorate general's electronic data processing and
\ninformation center. Its members include representatives of
\ngovernment offices and private companies such as importers,
\nshipping companies and banks.<\/p>\n
To support the program, state-owned telecommunications firm PT
\nIndosat and state-owned port operator PT Pelabuhan II have set up
\na provider, PT EDI Indonesia, to run the system for customs
\nservices.<\/p>\n
The system will electronically connect the customs office, as
\nthe system's core, to all related parties, including port and
\nairport authorities, shipping companies, importers, freight
\nforwarders, banks, tax offices and the state treasury.<\/p>\n
Not all parties will be electronically connected to the
\ncustoms office during the pilot project to be launched April 1.<\/p>\n
The pilot project will only connect the customs office to the
\nJakarta port and airport authorities, 23 importers, five shipping
\ncompanies and three foreign exchange banks.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/edi-system-needs-more-time-for-full-operation-in-ri-1447893297",
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"sponsor": "Okusi Associates",
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