Legislator calls on government to get tough on car smuggling
Legislator calls on government to get tough on car smuggling
Fadli, Batam
An outspoken legislator of the Batam Council has called on the
central government to take action against the unchecked smuggling
of used cars from Singapore and Malaysia, which has contributed
to traffic congestion on the islet.
Deputy chairman of the Batam municipal council Ahars Sulaiman
said National Police chief Gen. Da'i Bachtiar, finance minister
Budiono and Attorney General AR Rachman should take measures
against subordinates using smuggled cars on Batam.
He pointed out that more than 3,000 used cars illegally
imported from neighboring countries Singapore and Malaysia were
being driven on Batam without fear of persecution.
"Aside from the illegal cars, government officials of relevant
departments are involved in the smuggling and trade of used cars
in collusion with local dealers. This is why thousands of
smuggled cars are operating freely," he said.
Private vehicles are one of three commodities subject to
value-added tax (VAT) under Government Regulation No. 3/2003. The
other two are liquor and cigarettes.
Used cars from Singapore and Malaysia have flooded Riau,
including Batam and Tanjung Pinang, over the last five years
because of their relatively cheap price and good condition. An
automatic 1997 Honda Civic is offered for between Rp 15 million
and Rp 20 million. In Jakarta, a 1997 Civic sells for Rp 80
million.
Ahars said it looked unlikely that Batam Mayor Nyat Kadir
would stop the smuggling, because in addition to law enforcers
playing a role in the smuggling, the administration had planned
to legalize more than 400 smuggled cars on streets of Batam.
He said the council would oppose the administration's plan to
legalize the illegal cars.
"The main problem is not that owners of the illegal cars don't
pay taxes to the local administration, but that the island has a
limited road capacity. Traffic congestion has become a daily
occurrence on Batam's main roads because the number of cars,
trucks and motorcycles far exceed their capacity. Traffic will
only get worse unless the inflow of cars is regulated," he said.
Ahar suggested the smuggled cars be seized and turned into
scrap, or transported to other, underpopulated islands in the
province.
Amhar Ismail, secretary of the Joint Task Force Against
Smuggled Cars (TPKB), confirmed that the administration was
seeking approval from the legislative council for its plan to
legalize all smuggled cars recorded by the TPKB.
"With the legalization, owners (of the smuggled cars) will be
obliged to pay import tax and excise of Rp 5 million (US$555) and
the annual vehicle tax," he said. He agreed with Ahar that the
smuggling of used cars had become widespread because of
increasing demand and the low price of the vehicles.
The planned legalization of the illegal cars is based on
Ministerial Decree No. 584/2003, which stipulates that any VAT-
applicable commodity that was imported before the issuance of the
government regulation on VAT are still required to fulfill
appropriate tax and excise regulations.
Amhar conceded that the joint task force comprising local
police, Batam Prosecutors' Office and the industry and trade
office had found it difficult to keep illegal cars off the
streets, because the car owners had the backing of fraudulent
police and military personnel.
"The task force has confiscated numerous illegal cars and
handed over them to local police for further processing, but the
cars are back on the streets only a few days later, because the
owners have paid off local police," he said.