The customs of corruption<\/p>\n
Nothing seems to have changed within our customs service. It
\nremains among the most corrupt public institutions in the
\ncountry, together with the directorate general of taxation and
\nthe police.<\/p>\n
Even former president Soeharto, fed by the strongly entrenched
\nweb of corruption within the customs directorate general, felt it
\nnecessary to ask for foreign assistance to rein in the
\ndepartment. He stripped the customs service of its authority to
\nverify and clear imports, handing the job over to Switzerland's
\nSociete Generale de Surveillance for 10 years beginning in 1985.
\nHowever, it was business as usual after the contract with the
\nSwiss company ended in 1995 and the customs service was handed
\nback its authority.<\/p>\n
Reforming the customs service was supposed to be at the top of
\nthe government's agenda between 2001 and 2003, under the
\nsupervision of the International Monetary Fund. Yet there has
\nbeen little progress. Foreign chambers of commerce and import
\nassociations still see the customs department as the most corrupt
\npublic institution.<\/p>\n
President Susilo Bambang Yudhoyono demonstrated his
\ncomprehensive understanding of the most pressing problems facing
\nthe economy by including the customs and taxation services among
\nthe four government institutions (Bank Indonesia and the Attorney
\nGeneral's Office were the other two) he visited during his first
\nfew days in office last October.<\/p>\n
Yet the Economic and Social Research Institute at the
\nUniversity of Indonesia revealed last week that corruption
\nremained a major problem in the customs service.<\/p>\n
About 82 percent of 600 businesspeople the institute surveyed
\nin April and May admitted to paying illegal fees to customs
\nofficials. The survey, conducted in cooperation with the World
\nBank, covered businesses at five major seaports: Tanjung Priok in
\nJakarta, Tanjung Perak in Surabaya, Semarang in Central Java,
\nMakassar in South Sulawesi and Belawan in North Sumatra.<\/p>\n
The respondents also complained of gross inefficiency in the
\ncustoms service, saying it took at least six days to get a
\ndocument cleared.<\/p>\n
We wonder then what is the purpose of the Coordinating Team
\nfor Facilitating Imports and Exports, which is chaired by chief
\neconomics minister Aburizal Bakrie. Customs problems should be at
\nthe top of the team's agenda since an efficient and competent
\ncustoms service is key to smooth trade.<\/p>\n
Even though graft in the customs service is simply a
\nreflection of the embedded culture of corruption in our nation,
\nthe government should realize that the impact of a corrupt
\ncustoms service on the economy is more devastating than, say,
\nmalfeasance in the National Police or tax office.<\/p>\n
The effects of malfeasance within the tax service are limited
\nto the loss of state revenue as the government receives much less
\nthan is due it from taxpayers. But corruption within the customs
\nservice causes far-reaching damage, resulting in revenue loss and
\ncreating distortions in the domestic market because foreign goods
\npay much lower duties and taxes than mandated by law. This
\ncreates unfair competition for domestic products such as
\nelectronics, garments and produce like rice and sugar.<\/p>\n
The customs service plays a vital role in facilitating the
\nsmooth flow of imports, which is vital for the domestic
\nmanufacturing industry due to its heavy dependence on imported
\ngoods.<\/p>\n
No trade policy will be effective if the customs service,
\nwhich is responsible for guarding the gateways (airports and
\nseaports) to the country, remains as corrupt and technically
\nincompetent as it is now. Put another way, there will never be
\nfair trade without an efficient, fairly clean customs service.<\/p>\n
The findings of the latest survey clearly show how technically
\ninept the current customs and excise tax director general, Eddy
\nAbdurrahman, is in managing his office.<\/p>\n
Abdurrahman's comment that businesspeople should not pay
\nillegal fees to customs officials and should report directly to
\nhim any corrupt customs officials indicates one of two things: He
\nis either completely ignorant of what is really going on at his
\noffice, or the internal controls and internal audit system in his
\ndirectorate general is ineffective.<\/p>\n
True, the corrupt mentality at the customs service is a
\ndisease that cannot be cured in one or two years, and cannot be
\ntreated in isolation from other government and state
\ninstitutions. But the finding of the University Indonesia-World
\nBank survey warrants an overall reform of the customs service
\nthat should start with its chief.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/the-customs-of-corruption-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}