Sat, 05 Oct 2002

Customs policy gets cautious welcome

Rendi A. Witular, The Jakarta Post, Jakarta

Business executives have applauded the move by the Directorate General of Customs and Excise to reward 10 companies with faster and cheaper import clearance procedures, but doubted the facility could be fully implemented because of corrupt customs personnel.

"No matter how good the program is, the country's customs service will not improve until its officials change their corrupt mentality. Extortion during the clearance process will still be suffered by the 10 companies," deputy chairman of the Indonesian Economic Recovery Committee (KPEN) Anton Supit told The Jakarta Post on Thursday.

The customs service said in a statement on Tuesday that the 10 companies would be granted fast-track service at the country's main port of Tanjung Priok. Under the scheme, they would be able to clear their goods without undergoing document examination and physical checks by customs officials.

Customs officials will still carry out audits and spot checks on goods but the process will not hamper the flow of goods out of the port, the statement said, although it did not specify what form the checks would take.

The fast-track scheme started on Oct. 1 on a trial basis and will gradually be applied at other ports in the country.

Country general manager for PT LG Electronics Indonesia Sung Khyun shared Anton's opinion, saying that the facility would be a waste of time if the customs service did not assign clean personnel to oversee the implementation of the program.

"I thank and welcome the fast-track clearance facility provided by the customs service, but I'm sorry to say that I still have doubts about its implementation," said Khyun.

LG Electronics is among the 10 companies granted the facility. The other nine are PT Toyota Astra Motor, PT Astra Daihatsu Motor, PT General Motor Indonesia, PT Indomobil Suzuki Internasional, PT Astra Nissan Diesel Indonesia, PT Denso Indonesian Corporation, PT National Gobel, PT Sanyo Industries Indonesia and PT Sharp Yasonta Indonesia.

Khyun hoped that all the companies awarded the facility could clear their products in one day, and be rid of the need to pay bribes to corrupt officials.

Usually, an import clearance process can take more than three days or even a week.

Khyun added that the customs service should not only reward compliant companies but should also punish companies involved in smuggling and import undervaluation activities.

"Law enforcement should be upheld and enhanced. What good is this exceptional facility if smuggling is still rampant," said Khyun.

Meanwhile, Anton criticized the customs service for not disclosing the criteria for the selection the companies rewarded with the facility.

He urged the customs service to publish the criteria to ensure transparency and avoid abuses by customs officials.