Govt to set up anti-smuggling team

Fabiola Desy Unidjaja and Annastashya Emmanuella, The Jakarta Post, Jakarta

Amid mounting criticism of the apparent impotence of the customs and excise office in curbing rampant smuggling in the country, the government decided at a Cabinet meeting on Thursday to set up a powerful interdepartmental team to tackle illegal activities that had caused the state to suffer massive financial losses.

Director General of the Customs and Excise office Permana Agung said at a press conference after attending the meeting that the Office of the Coordinating Minister for the Economy would serve as the team's coordinator.

"This team is necessary so that we can conduct comprehensive surveillance on smuggling so that such activities do not hamper the country's efforts to revive the ailing economy," Permana said.

Recognizing that it was extremely difficult for one institution alone to stop smuggling, Permana said that members of the team would come from the customs service, the National Police and the relevant state agencies.

"The proposed team will have the power to impose strict measures and to crack down on all kinds of smuggling activities, while at the same time streamlining more than 100 regulations on the import-export trade," he added.

Poor law enforcement, graft and collusion have allowed smuggling to flourish in Indonesia, especially in the five years since the economic crisis struck the country in 1997.

Products smuggled include arms, timber, fuel, luxury cars, electronics and textiles.

A World Bank-sponsored assessment last year revealed that the customs and excise service was one of the country's most corrupt public institutions, along with the traffic police and judiciary.

Many parties have long complained that the rampant smuggling activities were made possible by collusion between corrupt customs officials and importers.

The disappearance of 14 containers of smuggled luxury cars and electronic goods from the Cirebon customs office in West Java last month is one example.

Reports said that the 14 smuggled containers were then discovered at a warehouse belonging to a businessman linked to senior military and police officers.

A survey sponsored by the Indonesian Importers Association (Ginsi) revealed that the handing over of inspection authority to the customs and excise office in 1997 had caused the state to suffer around Rp 30 trillion (US$3 billion) in potential revenue lost per year due to extensive smuggling and under-invoicing practices.

The survey said that after four years of assuming the authority to inspect imports, the customs office had only built a negative image among importers as its service has not improved, and has even deteriorated, amid rampant corruption.

The main problem in tackling smuggling was not just the presence of errant customs and security officials who provided support for smugglers, but also the inability of the Indonesian government to properly guard its vast maritime territory.

The government formed a joint team in early 2001 to crackdown on fuel smuggling, but it clearly failed to stop the practice.