Ministry threatens to freeze permits of defiant importers

Ministry threatens to freeze permits of defiant importers

Adianto P. Simamora, The Jakarta Post, Jakarta

The Ministry of Industry and Trade warned on Thursday it would
freeze the special permits, or identification numbers, issued to
importers of eight strategic commodities if they refused to
submit monthly reports to the ministry.

According to a new regulation, importers of sugar, rice, corn,
soybeans, electronic products, footwear, toys, textiles and
textile products are required to file monthly reports with the
ministry detailing their import activities.

But the ministry's director of imports, Aang K. Adikusumah,
said on Thursday that many of the importers had not filed any
reports since the regulation came into effect in the middle of
May.

"We have sent them (importers) warning letters. If they fail
to submit their reports before Sept. 15, we will freeze their
identification numbers, leaving them unable to import the
commodities," Aang told The Jakarta Post.

The government announced in March its new policy requiring
importers of these eight strategic commodities to obtain special
identification numbers from the Ministry of Industry and Trade.
The policy is meant to curb the smuggling of the commodities into
the country.

Local farmers and manufacturers have long complained that
rampant smuggling hurts their businesses.

The ministry has issued some 3,218 identification numbers to
importers. An importer can obtain more than one identification
number.

Aang said no monthly reports had been filed for about 60
percent of the 3,218 identification numbers issued.

The monthly reports are meant to contain such information as
types of products imported, import volume, price and country of
origin.

The data will help the ministry formulate measures to curb
smuggling.

Any deviations in the volume or contents of the imports could
prompt the government to revoke identification numbers.

Importers will also have to apply for new identification
numbers every five years.

Some 2,214 importers have obtained identification numbers from
the Ministry of Industry and Trade.

Data from the ministry shows that some 55.5 percent of the
importers are based in Jakarta, 30 percent in West Java and some
9.7 percent in East Java.

The ministry said about 36.7 percent were electronics
importers, 33.7 percent importers of textiles and textile
products, 6.9 percent footwear importers and 6.2 percent sugar
importers.

Businesspeople have repeatedly warned that smuggling is
causing extensive damage to local industries, and would force
many manufacturing companies to shut down their operations and
lay off workers.

In response to the problem, the government has formed a
special task force comprising several government agencies,
including the military and the police, to crack down on
smuggling.

Minister of Industry and Trade Rini M.S. Soewandi has also set
up a crisis center consisting of dozens of local business
associations to help resolve the smuggling problem.