Most firms not yet linked up with customs EDI<\/p>\n
JAKARTA (JP): The associations of textile companies, shipping
\nlines and car makers said yesterday none of their members had
\nbeen linked up with the Electronic Data Interchange (EDI) which
\nthe Customs and Excise Tax Directorate General plans to operate
\nin April.<\/p>\n
"We are still struggling with poor business performance. We do
\nnot have the resources now to link up with the EDI system,"
\nIndonesian National Shipowners Association chairman Firdaus
\nWadjdi said.<\/p>\n
Firdaus said none of his association's members had been linked
\nwith the customs EDI to his knowledge.<\/p>\n
Indonesian Textile Association secretary general Benny
\nSutrisno also said none of his members had gone on line with the
\ncustoms EDI.<\/p>\n
"Linking up with EDI means additional costs for the hardware,
\nsoftware and training of operators, not to mention the daily
\noperating costs," Benny said.<\/p>\n
He suggested more comprehensive preparations be made for the
\nimplementation of the new customs law.<\/p>\n
Herlina, an automotive spare parts importer, wondered who
\nwould finance the link with the customs EDI.<\/p>\n
An executive of the Association of Automobile Sole Agents and
\nAssemblers said her organization was not fully aware of the
\ncustoms EDI.<\/p>\n
"We are supposed to get a briefing from customs on Wednesday
\n(today)," she said.<\/p>\n
The customs service has insisted over the last few months that
\nthe EDI system would be the "life and death" of new customs rules
\nand procedures to be enforced in April.<\/p>\n
The system is designed to electronically connect the customs
\noffice with all related parties involved in the clearance of
\nimports from the port, including importers, port and airport
\nauthorities, shipping companies, airlines, freight forwarders,
\nbanks and other related government offices.<\/p>\n
Customs and Excise Director General Soehardjo and Finance
\nMinister Mar'ie Muhammad have often said that direct contact was
\nusually the starting point for collusion between businessmen and
\ncustoms officials.<\/p>\n
"By processing and submitting documents through the online
\ncomputer system we will reduce red tape and minimize the
\npossibility of collusions between businesspeople and officials,"
\nSoehardjo told the House of Representatives last week.<\/p>\n
But given the inadequate preparations for the EDI system, most
\nbusinessmen and analysts are doubtful the system can start in
\nApril.<\/p>\n
They are afraid if the EDI system is forced into the customs
\nadministration in April it would cause chaos at the expense of
\nimport flows.<\/p>\n
But if the EDI is not implemented, businessmen would have to
\nmeet directly with customs officers with "worrisome"
\nconsequences.<\/p>\n
Until now, there has been little movement towards EDI
\nstandards in the country, even on paper-based transactions like
\nthe introduction of paper documents which come after the EDI fact
\nmessage standards and ISO data standards.<\/p>\n
Two years<\/p>\n
Analysts cited Singapore's and Japan's experiences, two
\ncountries in Asia which have successfully implemented the EDI
\nsystem not only for transportation but also customs purposes.<\/p>\n
Recent World Bank and UNDP studies show that at least two
\nyears of trial operations, preceded by several years of technical
\npreparations, are needed to ensure the smooth implementation of
\nEDI.<\/p>\n
EDI has succeeded in facilitating trade, covering transactions
\nbetween importers, exporters, customs, banks, ports, shippers,
\nfreight forwarders, agents and brokers in many developed
\ncountries. The system brings substantial savings and benefits to
\nits users, the reports said.<\/p>\n
But Indonesia has yet to start trial operations as the
\nConsultative Committee for EDI was set up only last year.<\/p>\n
PT EDI Indonesia, the system's provider, was incorporated only
\nin June, 1995, as a joint venture between PT Indosat and PT
\nPelabuhan Indonesia II port management company.<\/p>\n
What seemed to make things more worrisome was the customs
\ndirectorate general's disclosure last week that it had not yet
\nreceived the money allocated in the budget for EDI's development
\nand operations.<\/p>\n
Singapore's TradeNet can process 10,000 customs declarations a
\nday and most clear customs in less than 15 minutes.<\/p>\n
But TradeNet was being prepared in 1982 although it was not
\nput into full operation until 1991.<\/p>\n
Japan began preparations for its EDI system in 1977 and
\nstarted fully operating it in early 1991.<\/p>\n
Malaysia issued a directive in early 1993 for the customs
\nservice to go EDI but as of last year their system still had many
\nproblems.<\/p>\n
Most other major trading countries in Asia like South Korea,
\nThailand, the Philippines, India, are still at the preparation
\nstage for developing EDI for customs purposes.<\/p>\n
Thailand's condition is similar to Indonesia's. It has been
\nworking on a national EDI initiative for several years but has no
\nworking implementation at present and a committee on EDI is still
\nstudying the proposal.<\/p>\n
One of the biggest problems in developing EDI for customs
\npurposes is the many parties involved: Shipping agents,
\nforwarding agents, seaport\/airport authorities, banks,
\nwarehousing companies, importers, in addition to the EDI
\nprovider.<\/p>\n
According to the studies EDI is more than just a computer
\nsystem but a whole new way of doing business.<\/p>\n
Since virtually none of Indonesia's trading community has any
\npractical EDI experience, it will be a big task for them to adapt
\ntheir existing operations and standards and computer systems to
\nEDI standards, to train their staff, install and operate the
\nsystem.<\/p>",
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