'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.