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New ruling on smuggling promises harsher penalties and incentives

| Source: JP

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.

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