The bogus export scandal<\/p>\n
A different viewpoint was put forward yesterday on the export
\ncredit scam which is said to have caused great financial losses
\nto the state. As pointed out by Econit, an independent advisory
\ngroup in economics, industry and trade, the much-talked-about
\nbogus export scandal was primarily made possible by the
\nweaknesses in the Indonesian export and import procedures, as
\nwell as the absence of a controlling mechanism.<\/p>\n
The report goes on to say that since the procedures heavily
\ndepend on the function or malfunction of the \"independent\"
\nsurveyors (Sucofindo, SI and SGS), instead of the Customs and
\nExcise arm of the government, the appointment of those surveyors
\nshould be reviewed in the first place. According to Econit, these
\nsurveyors are expensive and not efficient.<\/p>\n
There is probably some substance to the argument against the
\nuse of private surveyors, especially SGS, a Geneva-based company
\nwhich took over the basic function of the Customs and Excise
\noffice in 1985. Similar opinions have been frequently voiced, to
\nno avail. Presumably because there is no guarantee that the
\nDirectorate General for Customs and Excise will do a better job,
\njudging from past experiences.<\/p>\n
On the other hand, one should not forget the fact that SGS
\nfunctions only on the import side and its function has been much
\nreduced over the years. The export side is the territory of PT
\nSucofindo and PT Survey Indonesia, in which the Indonesian
\ngovernment owns a majority stake.<\/p>\n
We are of the opinion that the above argument can also be
\nmisleading, for several reasons.<\/p>\n
The first is that the whole bogus export scandal is mainly the
\nresult of the linkage between the so-called exporters, commercial
\nbanks and the central bank. The \"exporters\" produce counterfeit
\nexport documents to illegally get import duty and value-added tax
\nrebates from the Bapeksta (export service facilitating agency)
\nand to obtain subsidized export credits, or the rediscount
\nfacility from Bank Indonesia, the central bank. This low interest
\nloan is provided to the exporter through a commercial bank, which
\nprocesses his bogus documents at the central bank. The commercial
\nbank runs a very low risk because the loan is usually backed by
\nstrong collateral, in some instances even 100 percent cash
\ncollateral.<\/p>\n
The focus of investigation in the case of the questionable
\nexport credits, then, should first of all be directed at that
\nlinkage, i.e. the exporter, the commercial bank, and the central
\nbank. Or, in the case of the illegal rebates, at the linkage
\nbetween the exporter and Bapeksta.<\/p>\n
Second, it is still not clear how large the financial losses
\nto the state are because of the wrongly-paid rebates. And it is
\nprobable that the disbursed low-interest loans will not result in
\nbad debts.<\/p>\n
There are reasons to believe that this kind of practice is a
\nresult of the tight money policy enforced by the government a few
\nyears ago. This policy threw many commercial banks into a very
\ntight liquidity situation, and the export facility provides them
\nwith many loopholes.<\/p>\n
Third, the bogus export scam is probably less of a problem in
\nitself as compared to its implications in relation to the total
\nefforts toward promoting non-oil exports. A case in point is the
\nfact that Indonesian textile exports to Singapore in fiscal year
\n1993\/1994 dropped by almost 50 percent from their level in the
\nprevious fiscal year. And apparently this is related to the fact
\nthat the authorities have been more scrupulous. This brings us to
\nthe conclusion that Indonesian export figures are very much
\nquestionable.<\/p>\n
Of course the investigation into the bogus export scam should
\nbe pursued, in the right direction. However many other important
\nquestions should also be raised. If the export figures are not
\nreliable, how about our balance of payments? Consequently, how
\nmuch does this affect our strategy in promoting non-oil exports?<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/the-bogus-export-scandal-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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