SBY starts war on corrupt immigration

SBY starts war on corrupt immigration

The Jakarta Post, Jakarta

Corruption at the Directorate General of Immigration has reached
Rp 1 trillion (US$102 million) per annum, the country's top
officials say, including some Rp 200 billion from departure tax
at Soekarno-Hatta International Airport.

The situation at the directorate general, which is under the
auspices of the Ministry of Justice and Human Rights, has come
under scrutiny since President Susilo Bambang Yudhoyono declared
a national battle against corruption, which not only causes
financial losses to the state but damages the country's image.

"Irregularities at immigration offices are getting more
serious, which is worrisome. It's time for us to reform the
offices' management and supervision," he said after a limited
Cabinet meeting on the performance of immigration offices.

"I have received reports that immigration offices are not
functioning properly. Officials have scared away foreign visitors
who want to do business here or have a vacation here," he added.

Corruption at immigration offices comes in various forms
including the embezzlement of departure tax together
with tax officials, the collection of illegal fees from passport
and visa applicants and a "service fee" for the issuance of fake
passports and the revocation of travel bans.

Minister of Finance Sri Mulyani Indrawati said "leakage" in
the collection of departure tax at the Soekarno-Hatta airport
alone could reach Rp 200 billion annually, from the estimated
collection of Rp 1.2 trillion.

It is a worrying figure, largely brought about by the misuse
of the free departure-tax facility, she said.

At present, 50 categories of travelers are exempted from
paying departure tax, including those on sports, cultural or
religious assignments or those traveling for trade or export
exhibitions or promotional activities.

Travelers outside these categories -- each of whom is
supposedly charged Rp 1 million -- can "qualify for the facility"
through paying less money to immigration officials in return for
a receipt declaring they are exempted from paying departure tax
as they fall into one of the 50 categories.

During his visit to Kuala Lumpur last week, Susilo asked
Coordinating Minister for the Economy Boediono to review the
policy, which has been implemented since the 1980s, if it is
shown to be deterring Indonesians from traveling abroad.

The payment is actually an advance on income tax, and can thus
be deducted from tax bills. But the government is apparently
making a significant profit from the exit tax, since most
Indonesians, for one reason or another, do not pay income taxes,
and thus do not claim back these payments.

At the Cabinet meeting, Susilo ordered National Police chief
Gen. Sutanto, Attorney General Abdulrahman Saleh and related
ministers to thoroughly inspect immigration offices and prosecute
unscrupulous officials.

Susilo also called for restructuring in immigration offices'
management and supervision and an upgrade in the immigration
system to improve public services, particularly for foreign
visitors.

"The restructuring will help create 'clean', accountable and
professional immigration officials. They are needed to stop
transnational crime and to boost state revenues from departure
tax," he said.

One step ahead of the President's call, the Jakarta Police
arrested six people over the weekend -- three immigration
officials, two tax officials and one scalper -- suspected of
having embezzled departure tax.

City Police special crimes unit deputy chief Adj. Sr. Comr.
Ike Edwin said the police were questioning the suspects in a bid
to get to other syndicate members.

"We hope we can break up the whole syndicate soon. We are
still looking at other people involved in the case, including
agents for migrant workers," he said.

The six suspects are accused of have embezzled exit tax from
thousands of migrant workers who departed the country over the
last few years.