Importers demand Cabinet show more seriousness about customs' incompetence

Importers demand Cabinet show more seriousness about customs' incompetence

The Jakarta Post, Jakarta

The Indonesian Importers Association (GINSI) has expressed
utter disappointment over the recent disappearance of 14
containers of smuggled luxury cars and electronic goods from the
custody of the customs office at Cirebon port in West Java,
pointing out that the incident only reaffirmed the incompetence
of the customs service.

"It is simply mind-boggling to note how so many containers
held by the local customs office in late January could have
simply disappeared from their custody and were subsequently
discovered in the warehouse of a local businessman," GINSI
Chairman Amirudin Saud said over the weekend.

Amirudin said it was almost unbelievable that after the
Director General of Customs and Excise Duty Permana Agung
personally visited Cirebon to inspect the contraband goods, his
officers still allowed such a blatant scam to occur.

"The incident has implications, which go beyond the case
itself. If 14 containers can disappear from a relatively small
port such as Cirebon without anybody claiming to see or hear
anything, it is a demonstration to the rest of the world that
Indonesia has lost control over its ports," he added.

Amirudin was commenting on reports in The Jakarta Post over
the past few weeks about the smuggling attempt discovery by
Cirebon port officials who immediately notified the customs
office.

However, what was initially hailed as a success in foiling the
smuggling of goods worth an estimated Rp 20.5 billion, but soon
turned into a public scandal after a team of local legislators
found out several days later that the 14 containers had
disappeared from custody and were later found in the warehouse of
a local businessman, who is alleged to have ties with some
military officers.

"This incident could have serious consequences for the
security rating of export cargoes shipped out of Indonesia to the
United States and Europe. The government should realize these
broader implications," Amirudin added.

He said if the Cabinet intends to make any decisions of
economic consequence this year it should begin by bringing the
country's ports under control and thereby eliminate the
possibility of Indonesia being blacklisted as a high-risk nation
from the point of view of "supply chain security".

Amirudin added that as soon as the customs service was alerted
by Cirebon port officials of the smuggling attempt, it should
have immediately placed a customs seal on the containers and put
them under guard and duly alerted the port's security that the
containers were not to be removed under any circumstances.

"However, it is hard to imagine how 14 containers and 14
trucks could have just driven out of the port. This could only
happen if there was a combination of conspiracy, negligence and
incompetence," he pointed out.

According to him, 12 containers of electronic goods are enough
electronics, that if they were dumped on the domestic market,
could have a major impact on local businesses and employment.

"How many times must this happen again before the government
takes action? We are most concerned that the Cabinet's reluctance
to take a bold decision may result in no decision at all,"
Amirudin said.

This incident, he said, is not just about the loss of import
duty revenue to the state. It is about everything that matters so
much to Indonesia's economic recovery. It is about employment,
port efficiency, discipline and the country's image as a secure
trading partner.

Amirudin fully supported the demands by the Cirebon
legislators that the government appoint an independent
investigation into this case with a view to documenting all the
lapses in port security that allowed it to happen and to take
immediate steps to ensure that such an incident will not be
repeated.