New ruling on smuggling promises harsher penalties and incentives

Zakki P. Hakim, The Jakarta Post, Jakarta

Harsher punishment for perpetrators and abettors, a witness protection program, special incentives for investigators and criminalizing custom officials' "ignorance" are among the key items contained in a draft government regulation on smuggling.

The government regulation in lieu of law, or Perpu, a copy of which was obtained by The Jakarta Post over the weekend, comes as President Susilo Bambang Yudhoyono has prioritized the fight against smuggling.

Businessmen have long complained about the widespread smuggling in the country -- a threat to the economy, as it discourages new investment, and therefore the survivability of local industries.

For example, the electronics industry claims that about 50 percent of electronics sold in Indonesia were brought into the country illegally.

The new anti-smuggling regulation was drawn up by the previous government, which considered the latest draft as final.

Current Minister of Trade Mari E. Pangestu, however, told legislators recently that the ministry needed to review the draft with relevant ministries before enacting it.

A Perpu is drafted by the government in emergencies and does not require initial approval from legislators, and the House of Representatives has a month since a Perpu's enactment to approve or revoke it.

If implemented, the Perpu will annul several articles related to smuggling in Law No. 10/1995 on customs.

The Customs Law stipulates that any act of smuggling is punishable by up to eight years in prison and a maximum fine of Rp 500 million (US$55,500).

The new regulation promises stricter punishment for smugglers and those who facilitate the crime, with a maximum life sentence and a fine of between Rp 500 million and Rp 10 billion.

The Perpu also redefines smuggling to include fraud in the importation of goods, trade in smuggled goods, stockpiling of smuggled goods and abetting smugglers.

Moreover, smuggled goods can be declared state evidence.

The Perpu ensures that officials involved or implicated in smuggling will not sleep well, as it criminalizes aiding and abetting in smuggling -- deliberately or through ignorance and neglect.

According to an explanatory note, this clause is essential to prevent the possibility of smugglers establishing a cooperation with officials.

Elsewhere, the draft states that investigators can start their probe of a smuggling case upon reports from the public or from concerned institutions.

The Perpu also stipulates that the court prioritize smuggling cases over other criminal cases.

A crucial addition in the new ruling is that law enforcers handling a smuggling case will be provided a financial incentive sourced from the state budget or other legitimate funds as determined by the finance minister in consultation with the trade minister.

Under the new draft regulation, the state is also obligated to provide protection to whistle blowers, witnesses, investigators, prosecutors and judges, as well as their families, and a special article guarantees confidentiality with regards the whistle blower's identity.

Ministry of Justice and Human Rights director general of law Abdul Gani Abdullah said the draft was a comprehensive measure to curb smuggling.

"The draft is good enough. It is now up to the new minister to implement it," said Abdul, who was involved in drawing up the Perpu.