JICA provides aid to boost performance of customs office

JAKARTA (JP): The Japanese government will provide Indonesia with modern laboratory equipment worth 58.47 million yen (about US$500,000) to boost the performance of the country's customs office, according to Agung Permana, the director general of customs and excise.

He said on Friday that the funds, which were channeled through the Japanese International Cooperation Agency (JICA), would speed up the physical inspection process of imported chemical products.

"This (the inspection) is important because 40 percent of the chemical products sold here are imported," he told reporters at a press conference.

Agung explained that the customs office had to physically verify only imported products suspected to have false documentation. Importers have been known to falsify import papers to take advantage of a zero tariff facility provided by the government for the importing of certain products.

He said that about 13 percent of the 596 import documents investigated by the customs office between January and February were found to be deceptive after samples of the imported chemical products were examined.

Agung, however, stressed that efforts to prevent the state from suffering losses caused by the practice must not cause serious delays to product deliveries, which would only discourage investment in the country.

"Japan knows very well that improving Indonesia's customs office is very important for the country's economic recovery," said Takashi Matsumoto, a policy adviser to the director general of customs and excise.

He explained that an efficient customs office was essential to attract foreign investment to the country and to increase the competitiveness of exports.

"Investors see a clear and transparent customs system as a key factor," he said.

He said that in addition to the new equipment, JICA is providing technical assistance to improve the expertise of the customs inspection officers.

He added that there were plans to provide further assistance by installing a modern computer system in the country's customs office network, which was expected to be completed before the 2003 Asian Free Trade Area takes place.

Agung said the fact that only 13 percent of the suspect import documents were proven to be falsified indicated the customs officer's poor capability in detecting deception.

"We have to upgrade the skills of our officers in a bid to save the state from massive loss, but also to prevent serious delays in product deliveries," he said.

He pointed out that modern customs offices in developed countries were much more effective, and that 70 percent of suspect imported goods were proven to have used false documents.

He expected that 90 percent of imported products would not have to undergo physical inspection starting next month.

"But I will not be rigid on this policy," he added. (rei)