'Customs office has failed to achieves reform'

'Customs office has failed to achieves reform'

Rendi A. Witular, The Jakarta Post, Jakarta

Despite strong public criticism over the last five months, the
Directorate of Customs and Excise has still failed to show that
it is changing and reforming itself, industry players say.

Corruption is still rampant at the directorate making it
difficult for many businessmen to get clearance for their goods
without paying bribes, they asserted.

The directorate claims to have boosted campaigns against
smuggling, but industry players doubted its long-term commitment
and consistency.

Sofyan Wanandi, chairman of the National Economic Recovery
Committee (KPEN), told The Jakarta Post that he still heard of
many complaints that smuggling was still rampant and customs
officials were still asking for illegal fees.

Following public criticism, the customs office intensified its
antismuggling efforts over the past several months, but Sofyan
said the customs office only confiscated petty goods, while
overlooking commodities that affected the lives of the majority
of the people.

"In cracking down on smuggling, they should concentrate on the
smuggling of strategic commodities that have a direct impact on
the Indonesian economy such as rice and sugar, rather than sex
toys and pornographic VCDs," he said.

He also doubted the customs office's commitment against
smuggling.

"I am afraid that the antismuggling campaign is only a
temporary shock therapy with consistency remaining in question."
said Sofyan.

Sofyan also said corruption was so rampant in the customs
office that not only businessmen had to pay illegal fees to clear
their goods but that smugglers could simply walk free after
paying a bribe.

"That's why I haven't heard one report about a smuggler being
tried or going to jail," he said.

As for the confiscated smuggled goods, Sofyan said, the
customs office usually puts them on auction where the smugglers
usually win the bid.

"The goods should be burned rather than put on auction," he
said.

Sharing Sofyan's concerns, Lili Asdjudiredja, one of the
chairmen of the Indonesian Textile Association (API), said that
there was no improvement in the performance of the customs office
over the last five months as smuggling was still rampant.

He also blamed the rampant smuggling on Law No. 10/1995, which
he said contained loopholes allowing smugglers to avoid
prosecution.

Under the law, a person who brings goods with fake documents
into the country can only be fined, while people who bring goods
into the country without documents are prosecuted.

That's why many smugglers carry documents, even if only fake
ones, to avoid prosecution in case of arrest.

"This law must be revised," he said.

Lee Kang Hyu, executive director of the Electronic Union of
Indonesia (GABEL), while still being critical of the customs
office' performance, said that the office had made some progress
in its antismuggling campaign over the past five months.

Lee said he had been informed that smuggled electronic goods,
which are cheaper than locally made goods, are currently rather
hard to find in the market, possibly because of stricter
supervision by the customs office.

He said, however, the stringency was only temporary.

"There are still illegal imported electronic goods in the
market, but it is not as prevalent as before.

"However, I regret that the customs office has not brought the
smugglers to court. This is still a bad precedent for law
enforcement in the country, and one of the factors that
discourages investors from investing in Indonesia," said Lee.

Customs and excise director general Permana Agung and other
officials were unavailable for comment.

A nationwide study of corruption conducted last year under the
sponsorship of the World Bank and the United Nations Development
Program confirmed that the customs and tax office was the most
corrupt public institution in Indonesia.

The reform program agreement with the International Monetary
Fund (IMF), signed on Dec. 13, 2001 stipulated elaborate
measures, including implementation schedules, to improve the
customs administration, and to remove corrupt officials from the
office.

Currently the restructuring of the customs office is still in
process.