Indonesian Political, Business & Finance News

Business urge new customs chief to get serious

| Source: JP

Business urge new customs chief to get serious

A'an Suryana, The Jakarta Post, Jakarta

The business community urged Eddy Abdurachman, who was
recently named new Director General of Customs and Excise, to
work hard to curb rampant smuggling and corruption activities
here.

Anton Supit, director of the Crisis Center, said Eddy should
not only focus on meeting revenue targets set in the state
budget, but must also address the out-of-control smuggling
disaster which usually involves collusion and bribery of customs
officials.

He said that the rampant smuggling had seriously threatened
the survival of various domestic industries.

He was commenting on an earlier report that President Megawati
Soekarnoputri had issued a decree naming Eddy as the new
director, replacing Permana Agung.

Anton said that Permana was a failure in his previous post
with regard to smuggling, citing the fact that corruption during
his tenure had increased considerably.

"Smuggling became more rampant during his term," he said,
pointing out, as an example, that some 80 percent of the goods
sold at Mangga Dua mall were smuggled.

He said that the smuggled goods were not only clothing, but
also cellular phones, electronics, sugar and rice.

The notorious corruption within the customs departments has
cost local industries dearly as most cannot compete with much
cheaper goods brought into the country without proper tariffs
being applied, but instead usually a much cheaper bribe to
customs officials.

The Crisis Center is an agency jointly set up by businessmen
and Minister of Trade and Industry Rini Soewandi with a mission
to help resolve the current problems faced by local businessmen.

"Judging from the harmful effects, the new director must be
very serious about combating corruption," said Anton, who is also
an executive with the Indonesian Footwear Association.

He acknowledged, however, that Eddy would face a tough
challenge to curb smuggling as much of it was believed to be
controlled by organized crime groups, but he did not elaborate.

Separately, Minister of Finance Boediono confirmed that Eddy
would replace Permana at the top post.

He said that the handover ceremony would take place soon.

Eddy is currently the head of the customs office in Makassar,
South Sulawesi, which came under fire last year for apparently
aiding and abetting the illegal importation of at least 11 luxury
German automobiles.

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