Government urged to ban fictitious importers

JAKARTA (JP): The director general of customs and excise, Soehardjo, urged the Ministry of Industry and Trade yesterday to revoke 102 importers' licenses who had submitted false addresses to the customs office.

"The importers' licenses must be revoked," he said during a visit by House Budgetary Commission members to Tanjung Priok port.

He said the importers had created problems in administrative procedures and caused losses in government duty receipts.

The chairman of the Indonesian Importers Association, Amiruddin Saud, said firm action should be taken against the importers.

"The importers should not be allowed to operate any longer if it has been proven they violated the law," he said.

Of about 3,000 importers, 102 were found to have submitted false addresses to the customs office to avoid paying taxes and other administrative fees.

The customs office has released the importers' names and blacklisted them.

The House members were shown the new Electric Data Interchange (EDI) system which processes import documents more efficiently.

Soehardjo said the new computerized system cut the document processing from at least three days to just four hours because documents could be sent electronically to all agencies involved.

By eliminating physical contact, the paperless EDI system is expected to minimize opportunities for businessmen and customs officials to extort money from importers.

Soehardjo said the new system would reduce chances of companies giving false addresses to the customs office, because the system was linked to related agencies like the bank, the Export Service Facilitating Agency, and the freight forwarders.

"We cross-check with these agencies through the network," he said.

So far only 31 companies, including 23 importers, five shipping and airline companies and three banks have been included in the pilot project which began April 1.

Amiruddin said that by June, about 1,500 of his organization's Jakarta members would be linked to the EDI system.

Golkar House member Tadjudin Noer Said praised the new system and called for changes in other aspects of the customs clearance services.

"I have much hope in the EDI system speeding up the customs service," he said.

The electronic network system is provided by PT EDI, which is 49 percent owned by state-owned PT Indosat and 51 percent owned by PT Pelabuhan Indonesia Dua. (02)