Govt to meet importers over new import ruling

Adianto P Simamora, The Jakarta Post, Jakarta

The government plans to meet several importers next Tuesday to discuss the implementation of a new decree aimed at curbing widespread smuggling by requiring importers to possess identification numbers, according to one business player.

Chairman of the National Economic Recovery Committee (KPEN) Sofjan Wanandi said the meeting would discuss ways of implementing the decree effectively.

"The idea of such a decree is actually good, as it is designed to help local businesses and farmers despite rampant smuggling," he told The Jakarta Post.

"But the government must assure them (businesses and farmers) that the decree's implementation won't create high economic costs," he added.

Minister of Trade and Industry Rini M. Soewandi last week issued an import decree on eight commodities, namely sugar, rice, corn, soybeans, electronics, footwear, toys, textiles and textile products.

The decree followed complaints by local firms that the influx of smuggled products was seriously undermining their businesses.

Decree No.141/MPP/Kep/3/2002 now requires importers of these eight commodities to apply for special identification numbers from the trade and industry ministry.

The government hopes that with the new decree it will be able to supervise the flow of these commodities and ensure the payment of import duty.

Under the decree, importers must submit monthly reports detailing whether imports were brought into the country as planned.

Any deviation in terms of volume or contents of the imported goods could prompt the government to cancel the identification number.

Importers will also have to apply for a new number every five years.

Sofjan suggested that the government register general importers, saying that "almost all smuggled goods in this country are handled by general importers who don't even have an office address."

The decree also requires importers to attach stickers to their products to help identify legal imports from smuggled ones.

But Sofjan questioned the effectiveness of this requirement.

"I still can't imagine how you're going to attach these stickers onto every imported item, especially if we're talking about agricultural commodities like sugar, rice or corn," he said.

Sofjan warned that the sticker requirement would add to the cost of importing, and asked who would want to buy the stickers.

"The government must explain where the stickers are to come from, and disclose the costs involved to the public," he asserted.

Elsewhere, Chamber of Commerce and Industry (Kadin) executive director Soy Pardede described the identification number system a good idea.

"We don't have much of a choice except to fight smugglers and prevent them from bankrupting local businesses," he said.

But he added that the government would have to closely supervise the issuance of these numbers, reasoning that new licenses always gave rise to new types of corruption.

"The government must let outsiders from the private sector or the relevant associations closely oversee the issuing of these numbers," Soy said.

He further said that importers who had obtained a number should have their names and addresses announced by the government.

Another downside was that a lack of transparency often served to undermine the implementation of such decrees.

"Lack of transparency always means the creation of new costs," he explained.