KPEN calls for concerted effort to fight smuggling

The Jakarta Post, Jakarta

National Economic Recovery Committee (KPEN) chairman Sofyan Wanandi urged the Ministry of Industry and Trade and the Directorate General of Customs and Excise to work together to fight smuggling in the country, which is having a deleterious effect on local industries.

Sofyan said he supported moves to require importers to apply for new import licenses at the customs office, as long as the policy was effective in helping to curb smuggling and did not create additional bureaucratic burdens for businesses.

He was commenting on the finance ministry's new import registration policy, which will become effective on Jan. 1, 2003.

The new policy is opposed by Minister of Trade and Industry Rini M. Soewandi, who said it would increase the bureaucratic process faced by importers. She also insisted that the authority to regulate export and import activities in the country belonged to her ministry.

Currently, importers obtain their licenses from the Ministry of Trade and Industry.

The Directorate General of Customs and Excise has said that the additional import registration requirements were necessary to allow the customs office to gather sufficient information about the activities of importers, which would allow the office to detect illegal activities.

The directorate general said data from the Ministry of Trade and Industry was not accurate because many importers gave false information, such as their addresses and identities. This has created difficulties for the customs office in monitoring the operations of importers.

But Sofyan said that once the customs office finished gathering its own data, it must work with the Ministry of Trade and Industry to come up with a final database and cooperate in curbing smuggling.

"If they keep quarreling businesses will be the ones to suffer," he said.

Frequent policy disputes among economic ministers has helped to weaken the government's economic policies, including its fight against smuggling.

"The important thing is smuggling activities must be suppressed because it is hurting our local industries," Sofyan said.

Many local manufacturers have long complained about rampant smuggling, which has made it difficult for their products to compete against the cheaper smuggled goods.

Smuggling is also seen as one factor discouraging foreign investors from entering the country.