IMF, customs office agree on a reform program<\/p>\n
Rendi A. Witular and Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) and the Directorate General
\nof Customs and Excise have agreed on a restructuring program
\naimed at boosting the performance of the latter, long seen as one
\nof the most corrupt institutions in the country.<\/p>\n
At a news conference on Monday, Director General of Customs
\nand Excise Permana Agung said that a steering committee, led by
\nMinister of Finance Boediono, would be set up to formulate the
\ntechnical implementation of a 17-point restructuring program.<\/p>\n
\"The committee will include our counterparts from all import-
\nexport associations and other related state institutions. The
\ncommittee will convene every Wednesday to discuss the
\nimplementation of the programs,\" said Permana.<\/p>\n
Permana hoped that the program could be implemented early next
\nyear to promptly enhance the performance of the customs office.<\/p>\n
However, Permana did not elaborate on the 17 points in the
\nprogram. He only pointed out that the program comprises
\ncorrecting the personnel's integrity, which had been tarnished by
\ncorruption scandals, smuggling and other illegal practices.<\/p>\n
Furthermore, the program will also include the forming of an
\nadvisory committee that comprises stakeholders and related state
\ninstitutions, which will regularly convene to give advice and
\ncriticism to the customs office.<\/p>\n
The 17-point program is a result of the fourth letter of
\nintent (LoI) signed in Dec. 2001 with the IMF, which stipulates a
\nplan to improve procedures and strengthen the administration of
\nthe corruption-ridden customs service.<\/p>\n
There had been increasing complaints from businesses about
\nunfair competition from foreign goods, which enter the country
\nthrough smuggling or under-invoicing practices. They blame the
\nproblem mainly on what they consider as technical incompetence
\nand corruption by customs officials.<\/p>\n
A research report conducted last year by the Economic and
\nSocial Research Institute of the University of Indonesia
\nconcluded that the undervaluation of imports outside oil and gas
\nled to US$1.2 billion in financial losses for the state in 2000.<\/p>\n
According to the report, the problem began after importers
\nfailed to properly pay duty and the 10 percent value-added tax.<\/p>\n
Moreover, the losses amounted to almost $950 million in the
\nfirst six months of 2001 alone.<\/p>\n
Chairman of the Indonesian Importers' Association Amirudin
\nSaud estimated the losses to be even larger at some $3 billion a
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-customs-office-agree-on-a-reform-program-1447893297",
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"sponsor": "Okusi Associates",
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