Customs and Tax Authorities Seal Several Foreign-Flag Tourist Vessels

Jakarta (ANTARA) - A joint team from the Directorate General of Customs and the Directorate General of Taxes under the Ministry of Finance has sealed several foreign-flag tourist vessels suspected of violating regulations on import duty and tax exemption facilities.

The vessels were discovered during a surveillance patrol in Jakarta Bay, North Jakarta, by officers from the Jakarta Customs Regional Office alongside the North Jakarta Directorate General of Taxes.

“This activity involved inspecting foreign tourist vessels in Jakarta Bay,” said Head of Section II Enforcement at the Jakarta Customs Regional Office, Siswo Kristyanto, in a statement in Jakarta on Tuesday.

Siswo explained that the operation follows directives from Finance Minister Purbaya Yudhi Sadewa to explore untapped state revenue potential.

During the patrol, officers found four foreign tourist vessels suspected of breaching vessel declaration rules, parked at a private island. After inspection, the joint team sealed the foreign vessels.

“We carried out temporary sealing or affixing to the foreign tourist vessels suspected of violations. In total, around 4-5 vessels were sealed in Jakarta Bay,” he said.

He clarified that these foreign tourist vessels are principally granted import duty and tax exemptions for recreational activities in Indonesian waters.

However, information was received that the vessels were being misused for business purposes or rented out by exploiting the vessel declaration facility.

“We suspect some are misusing the facility, such as by renting them out or transferring ownership (selling) to individuals in Indonesia,” he said.

Siswo stated that currently, alongside the Directorate General of Taxes, they are conducting research on state losses due to the alleged violations involving the foreign tourist vessels.

“The losses are still under investigation, but in terms of state revenue, one vessel is subject to 5% import duty, 10% income tax, 11% VAT, and around 75% luxury goods tax per unit,” he said.

Representative from the North Jakarta Directorate General of Taxes Regional Office, Atma Vektor Mercury, affirmed that they, together with the Jakarta Customs Regional Office, will investigate the foreign tourist vessels suspected of violations.

“For sanctions, we will first conduct an assessment. If it’s administrative sanctions, an examination will be carried out. But if it’s criminal, we will direct it towards preliminary evidence interests,” he said.

Previously, Jakarta Customs also inspected 82 private cruise ships or yachts in the waters and docked at Batavia Marina Pier two weeks ago.

Head of Jakarta Customs Regional Office, Hendri Darnadi, emphasised that the inspection is part of efforts to optimise state revenue from the circulation of luxury goods, eradicate the underground economy, and enforce fiscal equity for citizens.

“The lower class, SMEs, even those buying motorbikes for their work, such as online motorcycle taxis, still pay duties and taxes, fulfilling their obligations on the motorbikes they buy. Should those buying high-value goods and luxury goods not pay according to their obligations?” said Hendri Darnadi, quoted from an official statement.

They will ensure whether the owners have fulfilled formal permit requirements and customs obligations for the vessels.