Half-baked reform of customs service slammed

Rendi A. Witular, The Jakarta Post, Jakarta

Experts have expressed doubt that the new reform measures aimed at overhauling the country's customs service would be effective in curbing smuggling and corruption as they did not prioritize changing the corrupt mentality of customs officials.

Akbar Saleh, a senior official of the Indonesian Forwarders' Association, said that boosting the quality of human resources should be the focus before the introduction of any new system.

"The most chronic problem lies in the mentality of the personnel," he told The Jakarta Post on Tuesday.

He was commenting on the reform strategies launched by the finance ministry to boost the performance of the customs service.

According to a document outlining the reform strategies, a copy of which was obtained by this paper, computerization of the customs system is crucial to minimize contact between customs officers and importers. The program is expected to help curb corruption.

But Akbar said that unscrupulous importers could always bribe the computer operators to change illegal goods into legal ones.

"The changing of the customs system is not the solution to the current problem. Smuggling and under-invoicing can still occur because of the corrupt personnel who are on duty at harbors and airports," said Akbar.

"The current system is just fine. What good is a new system if the man behind the wheel is not capable. Clean up the personnel and then set up a new system," he added.

University of Gadjah Mada economist Sri Adiningsih concurred. She said that the new reform drive fell short of the public's expectation that corruption would be tackled in the country's customs and excise service.

"Law enforcement is the only way to fix the corrupt mentality of the customs personnel. If this is done, smugglers will no longer feel so secure about continuing their smuggling or undervaluation activities," said Sri.

Sri added that a new independent body, outside the Ministry of Finance, should be established to supervise the customs service.

A nationwide study of corruption conducted last year under the sponsorship of the World Bank and United Nations Development Program confirmed that the customs and tax services were the most corrupt public institutions in Indonesia.

Corruption has allowed smugglers to illegally ship in goods at the expense of the state. The rampant smuggling activities have also discouraged foreign investors from setting up manufacturing plants here.

The government designed the new reform strategy based on the guidance of the International Monetary Fund. Various programs will be implemented starting in January next year.

The strategy paper, however, did not prioritize reform of the officials themselves. Rather, it focused on changing the customs system.

The only program related to improving the mentality of the officers is a plan to set up a code of conduct committee.

But the personnel who will sit on the committee are to be drawn from the Ministry of Finance and the Directorate of Customs and Excise itself.