Task force established to fight smuggling

The Jakarta Post, Jakarta

The government has established a task force to crack down on smuggling activities which resulted in massive financial losses for the government and hurt local businesses, a senior governmental official said Thursday.

Director General at the Customs and Excise Office Permana Agung said the team would be chaired by Coordinating Minister for Economy Dorodjatun Kuntjoro-Jakti with members including Finance Minister Boediono, Industry and Trade Minister Rini M Soewandi, Transportation Minister Agum Gumelar, Military Chief Adm. Widodo AS and National Police Chief Da'i Bachtiar.

Permana did not specify who else would be on the team when it was formed, but he said President Megawati Soekarnoputuri had yet to issue a decree on the establishment of the team.

The plan to establish the interdepartmental team was unveiled after the Cabinet meeting on Feb. 22.

"We expect the presidential degree on the anti-smuggling team to be issued this month," Permana said.

The team will be supported by a working group comprising several director generals of the ministry as well as the military and police representatives, he said.

The interdepartmental team was considered necessary in view of the serious problems caused by the smuggling activities and the apparent impotence or unwillingness of the customs and excise office to handle the matter on their own.

Permana said the team would have power to impose strict measures and to crack down on all kinds of smuggling activities.

"The team will also review about 100 regulations on export- import trade which have been issued by various departments and have been submitted to the customs and excise office," he said.

Industry players said the rampant smuggling activities were only possible due to the collusion between corrupt customs officials and unscrupulous importers, all of whom are in league with elements in the military and police.

The smuggled goods have created a situation wherein locally made products are uncompetitive -- lower quality, higher price -- causing massive losses to local manufacturers.

Curbing the corruption is also one of the main agendas proposed by Rini to revitalize the country's four top manufacturing sectors of textiles, electronics, footwear and pulp and paper.

The government formed a joint team in early 2001 to crack down on fuel smuggling, but it clearly failed in its mandate.