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.