RI, Japan agree to export control
Zakki P. Hakim, Jakarta
Indonesia must implement an export control mechanism on "sensitive items", otherwise it might meet difficulties in importing goods from developed countries, a discussion last week between the Indonesian and Japanese governments concluded.
Sensitive items include weapons of mass destruction (WMD) -- nuclear, chemical and biological weapons -- conventional arms and dual-use items that have military or WMD applications as well as peaceful, commercial applications.
Export control is a preventative measure against the exportation of sensitive items to countries of concern or to end- users connected to WMD development or terrorism.
The bilateral discussion followed a two-day seminar on export control mechanisms to help prevent the proliferation of WMD, held jointly by the Japanese Ministry of Economy, Trade and Industry, the Japan International Cooperation Agency (JICA) and the Ministry of Industry and Trade.
Atsuo Shibota, trade control director general at the Trade and Economic Cooperation Bureau of the Japanese trade ministry, told The Jakarta Post that developed countries might decide to stop exporting "sensitive items" goods to countries that did not apply export control mechanisms.
"It's better not to export to a certain country than to have sensitive items falling into the wrong hands," Shibota said.
He acknowledged, however, that applying an export control mechanism would create extra costs for exporters.
Shibota said Japanese exporters protested the mechanism as an extra burden, as it required them to establish their own internal control program and an export control department, tasked with conducting background checks on buyers to ensure that sensitive products would not be misused.
Moreover, he said, firms that failed to implement the mechanism were punishable by law, including imprisonment and fines.
"In Japan, a firm that does not apply export control is seen to be on the same level as a murderer, thief or burglar," he said, adding that Japan had adopted the mechanism 20 years ago.
Arif Adang, a senior official at the Ministry of Industry and Trade told the Post that Indonesia would gradually implement the export control mechanism, including the enactment of a regulation with criminal penalties -- however, it may take between five to 10 years for full implementation.
"Naturally, exporters would see this as a burden, but look at the impact of Sept. 11 or the Bali blast in 2002 -- they cost the private sector dearly," he said.
Arif said the seminar and follow-up discussion were the first steps toward an in-depth bilateral study to help Indonesia implement the mechanism.
"The next concrete step we will take is to adopt Japan's list of sensitive items and establish our own database," he said.
The business community, however, views the issue as another case in which the government has failed to protect private sector interests.
Adhi Lukman of the Indonesian Food and Beverages Association said developed countries always found a way to come up with new trade barriers accepted under World Trade Organization (WTO) regulations, while Indonesia had been unable to counter them.
"The government should team up with the private sector to negotiate any conditions proposed by developed countries," he said.