Indonesia seeks Singapore's help to curb smuggling

Indonesia seeks Singapore's help to curb smuggling

Adianto P. Simamora, The Jakarta Post, Jakarta

Minister of Industry and Trade Rini Soewandi has asked Singapore
for its cooperation, including joint border patrols, in curbing
the widespread smuggling into the country.

In a letter dated June 16 to Singaporean Minister for
International Trade and Industry George Yeo, Rini said that the
smuggling of goods into Indonesia had already reached a critical
level with respect to national economic development.

Rini also proposed to strengthen cooperation through direct
customs links via an electronic data exchange system.

"This, in turn, will assist not only the government and the
business community in focusing on the development of trade, but
will also help strengthen the close relationship between
Indonesia and Singapore in combating smuggling -- and therefore,
combating terrorism," Rini said as quoted by AFP.

It is not known if the Singaporean government has responded to
Rini's letter.

Rini also took issue with Singapore's presentation of trade
statistics between the neighboring countries.

On June 10, Rini and Minister of Foreign Affairs Hassan
Wirayuda voiced complaints about Singapore's reluctance to reveal
comprehensive data on bilateral trade between the two countries.

The complaint was due to a wide discrepancy in trade data
between those recorded by the Singapore Trade Statistics and
Indonesia's Central Statistics Agency (BPS).

In the 2002 trade data for example, Singapore recorded non-oil
exports to Indonesia as amounting to US$2.25 billion, compared to
the $2.44 billion reported by BPS.

Singapore also recorded non-oil imports from Indonesia at
$7.41 billion, against the $4.6 billion recorded in BPS data.

The disparity of the figures led to suggestions that they were
due to rampant smuggling activities between the two countries.

William Tan, first secretary at the Singaporean Embassy here,
however, strongly denied the complaint, saying the discrepancy
was caused by a different basis of calculation and that it had
nothing to do with smuggling activities.

Tan also denied an allegation by Hassan that Singapore had
refused to submit the trade data since 1973.

Local manufacturers have long complained about the massive
inflow of smuggled products into the country, threatening the
domestic market. The rampant smuggling has also been a
discouraging factor for foreign investors wanting to set up
manufacturing plants here.

Many claim the smuggling and under-invoicing practices were
made possible by collusion with corrupt customs officials.

Singapore and Indonesia have enjoyed good bilateral trade
relations for many years. In 2002, Singapore was one of
Indonesia's largest foreign investors, contributing $3.3 billion
in investments.

Singapore has also included high technology products assembled
in Batam and Bintan islands in its free trade pact with the
United States, under which the products can enter the U.S. market
duty-free.

The Indonesian government however, has banned sand exports
from Riau to Singapore since January this year.

The government also warned that the ban of sand exports would
remain in place unless the two governments were able to settle
border issues.