Indonesian Political, Business & Finance News

Surveyor Indonesia told to diversify its products

Surveyor Indonesia told to diversify its products

JAKARTA (JP): State-owned PT Surveyor Indonesia was told by the government yesterday to diversify its services to anticipate the possible removal of its core business, the pre-shipment inspection of imports.

When opening the company's two-day international workshop here yesterday, Director General for State-owned Enterprises Bacelius Ruru said the company could now start offering services related to its core business.

The company will also be allowed to move on to other sectors outside its customs-related services, as long as they are still within the boundaries of its missions, Ruru said.

"In such a situation, the company's assets and human resources will function more effectively," Ruru told dozens of the executives representing the company's 18 branches in 18 countries.

Ruru's remarks came in response to concerns for the survival of Surveyor Indonesia beyond the time when the government scraps the current pre-shipment inspection system, which has been in place since 1985.

Director General of Customs and Excise Soehardjo Soebardi said recently that the directors general of customs from the Association of Southeast Asian Nations (ASEAN) have agreed not to use the pre-shipment inspection system for the trade activities under the ASEAN Free Trade Area (AFTA) agreement, to be implemented after the year 2003.

"Surveyor Indonesia has to diversify its products in case the government replaces the pre-shipment inspection system with another system," Ruru said. "However, so far the government is staying with the current system."

The company's director of finance and administration, Toga M. Sitompul, said that his company was preparing to diversify its products, including business information services, consultancy and appraisal, asset management and quality assurances.

The quality assurance services include quality management system (ISO-9000) consultancy, total quality management consultancy and quality system training.

The environmental management services consist of environmental management system (EMS/ISO-1400) consultancy, eco-labeling and environmental system training.

New service

Speaking at the workshop, economist Dorodjatun Kuntjoro-Jakti suggested that Surveyor Indonesia introduce a new service to identify the countries of origins for goods traded within the free trade area.

"The rule of origin remains a daunting problem for any free trade area," Dorodjatun said.

He added that the pre-shipment inspection procedures would serve as the most reliable way to identify the countries of origin for any goods.

Meanwhile, I Nyoman Moena, a former president of the company, told The Jakarta Post that the government would have to dissolve Surveyor Indonesia when the country changes to another system of customs clearance.

The government has to take into consideration the opinions of customs users, most of whom are importers, Moena said.

The associations of Indonesian importers, exporters and ship- owners have expressed their support for the pre-shipment inspection system.

The government last July extended its contract with Surveyor Indonesia to carry out the pre-shipment inspection of imports for another two years. The company then hired out the Geneva-based Societe Generale de Surveillance (SGS) as its sub-contractor.

Togar said his company has 48 percent of the contract value of Rp 200 billion (US$87.3 million), compared to only five percent of the 1993-1995 contract. The rest goes to SGS.

Surveyor Indonesia is 76 percent owned by the Indonesian government, 20 percent by the Geneva-based Societe Generale de Surveillance and four percent by the state-owned PT Sucofindo. (kod/rid)

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