Local manufacturers support PSI system to curb smuggling<\/p>\n
Rendi A. Witular and Adianto P. Simamora, The Jakarta Post,
\nJakarta<\/p>\n
Local manufacturers whose businesses have been seriously
\nthreatened or damaged by cheaper, smuggled products urged the
\ngovernment to immediately reapply the pre-shipment import
\ninspection (PSI) system.<\/p>\n
PSI would allow an independent agency to inspect imported
\ngoods in their country of origin, taking over this responsibility
\nfrom the customs office, whose officials are notorious for
\ncorruption and turning a blind eye to smuggling.<\/p>\n
Indonesian Pharmaceutical Association chairman Anthony Ch.
\nSunarja said on Tuesday that the smuggled goods were not only
\nthreatening industry but were also harming consumers.<\/p>\n
\"Illegal and fake medicines are flooding the country. These
\ndrugs can easily be obtained from street vendors, and are being
\nsold cheaply,\" said Anthony.<\/p>\n
He explained that many of the fake products were being
\nmanufactured locally as the manufacturers had been able to
\nillegally ship in the machinery and raw materials required to
\nproduce them.<\/p>\n
He said that importing such items needed special permits from
\nthe health ministry.<\/p>\n
\"(But corrupt) customs personnel must have been involved in
\nhelping the import clearance of the illegal goods,\" he said.<\/p>\n
Calls for the government to apply the PSI system to certain
\nimported products, such as textiles, sugar, electronics and
\npharmaceutical goods, have been growing lately amid deep
\ndisappointment over the performance of the customs service in
\ncurbing smuggling activities.<\/p>\n
Minister of Trade and Industry Rini MS Soewandi earlier said
\nthat she supported the idea, especially as regards its
\napplication to the import of textiles and textile products. But
\nother businesses have come out against the PSI system, arguing
\nthat it would only create higher costs in importing raw materials
\nand capital goods.<\/p>\n
Indonesia adopted the PSI system in 1985, but abandoned it 10
\nyears later.<\/p>\n
Meanwhile, the Indonesian Electronics Association (Gabel) also
\nsupported the reinstatement of PSI.<\/p>\n
But the association's secretary-general Adhi Sumono warned
\nthat applying PSI without the support of the customs office might
\ncause new problems for raw materials importers.<\/p>\n
He pointed out that angry customs officials could
\nintentionally disrupt import clearance, which in turn would harm
\nindustry.<\/p>\n
\"Customs officials will definitely not be happy with the
\nreintroduction of PSI,\" he said.<\/p>\n
House of Representatives member Irmadi Lubis voiced support of
\nthe implementation of limited PSI, saying the government could no
\nlonger rely on corrupt customs personnel in the fight against
\nsmuggling and underinvoicing.<\/p>\n
\"We in House Commission V fully support the plan,\" said
\nIrmadi.<\/p>\n
Irmadi also criticized Minister of Finance Boediono for
\nfailing to properly supervise his subordinates, especially those
\nin the Directorate General of Customs and Excise.<\/p>\n
\"This is Boediono's failure. He is incapable when it comes to
\noversight and the fight against corruption,\" said Irmadi.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-manufacturers-support-psi-system-to-curb-smuggling-1447893297",
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