Mon, 08 Jun 1998

Customs and excise chief calls it quits

JAKARTA (JP): Soehardjo, former president Soeharto's brother- in-law, has quit his position as director general of customs and excise to give way to the smooth process of reform at his office.

Soehardjo said yesterday he had resigned as of Friday and had sent his resignation to President B.J. Habibie and a copy to the finance minister.

"I resigned because I do not consider myself capable of accelerating reform and modernization in the customs and excise (office).

"Besides, I want to give an opportunity to the young generation at the directorate general, because they have more capability and enthusiasm to speed up reform," Soehardjo told The Jakarta Post.

In addition, Soehardjo said he had requested an early retirement, which he would otherwise not be entitled to until 2001.

"Nevertheless, if the customs and excise wants my help, I will be happy to do so for the smoothness of customs works," he said.

He denied the assumption that his resignation had anything to do with the departure of Soeharto from the presidency.

"There is no relation and there was no pressure. I did it based on my own conscience."

Soehardjo was employed by the customs and excise office in 1960, just one year after finishing high school. He married Soeharto's sister, Bris, in 1966, when Soeharto came to power.

Upon his resignation, Soehardjo was replaced by the secretary of the directorate general, Ibrahim Karim, until Habibie elects new director general.

Soehardjo suggested that the President choose an official from the directorate general to assume his position so that all reform programs related to customs and excise could be implemented well.

"I think it would be better to select a person from the customs and excise to be director general because this position needs special knowledge, especially about international trade, customs and excise businesses.

"All people of the second echelon at the customs and excise office are ready and capable to be director general," Soehardjo said.

Soehardjo took the position as director general of customs and excise in 1991, when the government assigned state-owned surveyor firm PT Surveyor Indonesia to inspect Indonesia's imports.

Long-known as a corrupt institution, the customs office lost its inspection rights in mid-1985 when then president Soeharto entrusted Geneva-based Societe Generale de Surveillance (SGS) to conduct preshipment inspections of imports.

Under Soehardjo, the customs office regained its inspection rights in April last year, when the government implemented the 1995 customs law, which introduced a post-audit system of on- arrival inspections.

Soehardjo said he resigned with relief as he had helped restore the customs and excise office's rights and duties with the passage of the customs and excise laws.

Soehardjo, however, warned that reform in the customs office would be meaningless unless business circles also reformed.

"In this time of globalization, and especially in time of crisis on the part of our country, we all must improve transparency and implement good business practices. You cannot practice 'hit and run' business anymore." (rid)