PTSI diversifies products to face policy changes

PTSI diversifies products to face policy changes

JAKARTA (JP): State-owned PT Surveyor Indonesia, which carries
out pre-shipment inspection for Indonesia's imports, is
diversifying its products to anticipate the changes in the global
market and the government policy on customs clearance system.

"The impact, if the on-arrival system is reinstalled in
Indonesia, will be that PTSI will lose its income from pre-
shipment inspection jobs," the company's president, Faried Sybli
Barchia, said at a hearing with the House of Representatives
Budgetary Commission here yesterday.

Faried explained that the diversification would include
services on business information, commercial survey, consultancy
and appraisal, asset management as well as quality assurances.

Early last month, the government decided to extend its
contract with PTSI for another two years to inspect goods
imported into Indonesia at points of loading.

However, Director General of Customs and Excise Soehardjo said
recently that directors general of customs from member countries
of the Association of Southeast Asian Nations (ASEAN) had agreed
not to use the preshipment inspection system for trade within
ASEAN after the execution of the ASEAN Free Trade Area (AFTA)
agreement slated for 2003.

Faried said yesterday his company is also anticipating the
global trends in trade and investment, including the
implementation of free trade in ASEAN.

"In relation to the AFTA, PTSI has found a huge business
opportunity," Faried said, adding that his company could
introduce a new service on identifying countries of origin for
goods traded within the free trade area.

Meanwhile, Faried denied allegations that his company had
suffered losses, saying that his company had recorded a steady
increase of profits during the last four years. Last year, the
company posted a pre-tax profit of Rp 19.3 billion (US$8.5
million), up from Rp 17.7 billion in 1993. For the first semester
of this year, the company collected a pre-tax income of Rp 11.7
billion.

PTSI has given a substantial contribution to the government's
coffers. Last year, it delivered Rp 6.6 billion in taxes and
dividends, down from Rp 9.18 billion in 1993. This year, the
company projects submitting Rp 13.45 billion in taxes and
dividends to the government.

Import duties collected by the government through PTSI from
importers also increased in the last four years. Last year, the
company collected US$5,992 of import duties, up from $4,503 in
1993. This year, the company projects to collect $7,150 of import
duties.

PTSI was formed by the government in a joint venture with the
Geneva-based Societe Generale de Surveillance (SGS) in 1991 with
an authorized capital of Rp 782.8 million. PTSI was originally
designed to eventually take over all preshipment inspection jobs
from SGS, which has carried out the jobs since 1985. (rid)