Indonesian Political, Business & Finance News

Customs Seals Foreign-Flag Tourist Vessels in Jakarta Bay

| Source: CNN_ID Translated from Indonesian | Regulation
Customs Seals Foreign-Flag Tourist Vessels in Jakarta Bay
Image: CNN_ID

The Directorate General of Customs and Excise (DJBC) has sealed tourist vessels flying foreign flags in the waters of Jakarta Bay.

Head of Enforcement Section II at the Jakarta Customs Regional Office, Siswo Kristyanto, stated that the sealing was carried out jointly with the Directorate General of Taxes (DJP) against foreign tourist vessels violating import duty and tax exemption facilities.

“We conducted an inspection of foreign tourist vessels located in Jakarta Bay,” he said in a written statement on Tuesday (31/3).

During a patrol on Monday night (30/3), he mentioned that they found four foreign tourist vessels suspected of violating vessel declaration rules, which were placed on a private island.

“We carried out sealing or temporary attachment on the foreign tourist vessels that we suspect of violations. The total sealed in Jakarta Bay is around 4-5 vessels,” he explained.

He explained that the foreign vessels were using the pretext of being recreational vessels in Indonesian waters to obtain import duty and tax exemption facilities.

However, according to Siswo, the foreign tourist vessels were misused for business purposes or as a scheme where they were 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 people in Indonesia,” he clarified.

Currently, Siswo said that they, along with the Directorate General of Taxes, are still conducting research on the state losses due to the alleged violations by the foreign tourist vessels.

“The losses are still under research, but from the state revenue side, one vessel is subject to 5% import duty, 10% income tax, 11% VAT, and around 75% luxury goods tax per unit vessel,” he revealed.

Meanwhile, a representative from the North Jakarta Tax 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 conduct a review first. If it’s an administrative sanction, an examination will be carried out. But if it’s criminal, we will direct it towards preliminary evidence,” he concluded.

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

Head of the Jakarta Customs Regional Office, Hendri Darnadi, stated that the inspection was 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 ojek drivers, 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?” he said.

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