KPEN calls for concerted effort to fight smuggling

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.