Local manufacturers support PSI system to curb smuggling
Local manufacturers support PSI system to curb smuggling
Rendi A. Witular and Adianto P. Simamora, The Jakarta Post,
Jakarta
Local manufacturers whose businesses have been seriously
threatened or damaged by cheaper, smuggled products urged the
government to immediately reapply the pre-shipment import
inspection (PSI) system.
PSI would allow an independent agency to inspect imported
goods in their country of origin, taking over this responsibility
from the customs office, whose officials are notorious for
corruption and turning a blind eye to smuggling.
Indonesian Pharmaceutical Association chairman Anthony Ch.
Sunarja said on Tuesday that the smuggled goods were not only
threatening industry but were also harming consumers.
"Illegal and fake medicines are flooding the country. These
drugs can easily be obtained from street vendors, and are being
sold cheaply," said Anthony.
He explained that many of the fake products were being
manufactured locally as the manufacturers had been able to
illegally ship in the machinery and raw materials required to
produce them.
He said that importing such items needed special permits from
the health ministry.
"(But corrupt) customs personnel must have been involved in
helping the import clearance of the illegal goods," he said.
Calls for the government to apply the PSI system to certain
imported products, such as textiles, sugar, electronics and
pharmaceutical goods, have been growing lately amid deep
disappointment over the performance of the customs service in
curbing smuggling activities.
Minister of Trade and Industry Rini MS Soewandi earlier said
that she supported the idea, especially as regards its
application to the import of textiles and textile products. But
other businesses have come out against the PSI system, arguing
that it would only create higher costs in importing raw materials
and capital goods.
Indonesia adopted the PSI system in 1985, but abandoned it 10
years later.
Meanwhile, the Indonesian Electronics Association (Gabel) also
supported the reinstatement of PSI.
But the association's secretary-general Adhi Sumono warned
that applying PSI without the support of the customs office might
cause new problems for raw materials importers.
He pointed out that angry customs officials could
intentionally disrupt import clearance, which in turn would harm
industry.
"Customs officials will definitely not be happy with the
reintroduction of PSI," he said.
House of Representatives member Irmadi Lubis voiced support of
the implementation of limited PSI, saying the government could no
longer rely on corrupt customs personnel in the fight against
smuggling and underinvoicing.
"We in House Commission V fully support the plan," said
Irmadi.
Irmadi also criticized Minister of Finance Boediono for
failing to properly supervise his subordinates, especially those
in the Directorate General of Customs and Excise.
"This is Boediono's failure. He is incapable when it comes to
oversight and the fight against corruption," said Irmadi.