Indonesian Political, Business & Finance News

Importers upset at port's red tape

Importers upset at port's red tape

JAKARTA (JP): The Indonesian Importers Association is upset with what it describes as rampant red tape caused by customs officials at the Tanjung Priok port.

The association's chairman, Amirudin Saud, said yesterday that customs officials regularly issue "intelligence notes", which allow them to stall the clearance of imported goods and exact bribes from importers.

"Since last year, I have seen more than 300 intelligence notes issued by the division two head of the smuggling prevention office at Tanjung Priok," Amirudin said.

He added that the notes should not come from the division two head of the smuggling prevention office but from its director, or from the inspection head of the provincial customs office.

The notes, Amirudin said, must be based on information given by the police, the national intelligence agency or the prosecutor's office. "Not based on their own judgment," he said.

Under Presidential Instruction No. 3/1991, a revision of a presidential decree issued in 1985 which stripped the Directorate General of Customs and Excise of its inspection authority, customs officials basically may not hold up all imported goods equipped with inspection documents issued by a surveyor company.

PT Surveyor Indonesia has been assigned by the government, under a biannual contract, to inspect Indonesian imports at points of loading.

"The section head of division two often issues the intelligence notes, which makes us suspicious. It seems to me that they are just finding fault with importers," he said.

As an illustration, he said division two of the smuggling prevention office has held up five containers of garlic seeds imported from China since Feb. 17.

"Maybe they suspect that the garlic seeds are going to be used for domestic consumption instead of seeding," Amirudin said, adding that the importers of the garlic seeds had the necessary documents, including an importation license from the Ministry of Agriculture.

"It does not make sense at all that they have held it for 40 days without a clear explanation," Amirudin grumbled. He noted that the garlic seeds are destined for garlic plantations in Java and Sulawesi.

He said the 40-day delay has cost the garlic importer at least Rp 60 million (US$25,680) for the rental of cool-storage containers. The garlic seeds are valued at $105,042.

No officials at the directorate general were available for comment yesterday.

Director General of Customs and Excise Soehardjo Soebardi was reported as saying in Surabaya, East Java, last week that his office is committed to eliminating all red tape at his office so that there will be no more complaints from importers.

"If you encounter an invisible cost, please report it to me with evidences... If it turns out to be true, I will take firm measures to my subordinates," he said. (rid)

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