Indonesian Political, Business & Finance News

War on smugglers?

| Source: JP

War on smugglers?

Smuggling, like corruption, has been tolerated for far too
long. So long in fact, that by now it has reached a point that it
endangers not only the economy, but Indonesia's very existence.

A quick glance at some recent reports detailing how rampant
smuggling activities have become, and the impact they have on the
economy and the people, should raise alarms bells and prompt the
nation to act. Instead, we see even more indifference on the part
of our political leaders, the same attitude exhibited whenever
the subject of corruption and its impact on the nation comes up.

The manufacturing sector, supposedly the main engine of the
economy in generating export income and employment, is frustrated
by the inability of the government to prevent smuggled goods from
flooding our markets.

The electronics industry, for example, has been starved of new
investment because manufacturers, who are subject to multiple
taxes, have enough difficulty competing against legitimate but
cheaper imports, let alone against smuggled goods. Major
international electronic brands have found that it is a lot
easier to simply export their products into Indonesia rather than
trying to produce locally.

Plywood manufacturers, once the primadonna of Indonesia's
exports, have felt the brunt of smuggling. They have been starved
of timber, the main raw material for plywood, because most
Indonesian logs, felled legally or illegally, are being shipped
to foreign producers -- their own competitors.

We have also heard of products which enjoy government
subsidies, such as kerosene intended for the poor, being smuggled
out of the country to capitalize on the huge price differentials.

Then there are continuing reports of sand smuggling to
Singapore for its land reclamation project. Smuggling is not only
hurting the state coffers, but worse, it is harming the
environment of the Riau islets from where the sand is being
taken.

There are many other instances of smuggling, reported as well
as unreported, physical as well administrative, that are too
numerous to list here. Suffice it to say that smuggling is not
only hurting the government's purse, it is also costing the
entire nation in terms of revenue, jobs, and the environment. At
this rate, it could also bring about the collapse of the economy
and with it the entire nation.

These are reasons enough for the nation to immediately declare
war on smugglers. Like any declaration of war, this is a decision
that only the President can make.

It is not enough to simply replace the customs chief, arrest
the numerous small fry, or outsource the bulk of the customs work
to foreign agencies. There has to be a more concerted effort, and
most of all, a strong political will in fighting smuggling.

But wait. A war on smugglers? Here in Indonesia? Who is going
to fight it? The police, the Navy, the Army, the customs agency?
Think again.

Many of these smuggling activities could not take place unless
they are conducted with the knowledge, support, or even the
backing, of powerful individuals or institutions.

Some smuggling activities are simply too blatant to be able to
pass the authorities unnoticed.

The illegal shipment of sand to Singapore using large barges
could not have escaped the Navy's detection, yet, it is taking
place all the same. Recent smuggling of luxury cars have been
traced to senior officers of the National Police. And yet, we
have not heard of any follow up on any of these allegations.

Smuggling and corruption combined have spiraled so out of
control inside the customs agency that the government has
replaced its chief and is considering to contract foreign customs
inspectors.

Can we still trust our law enforcement people to wage the war
against smuggling when they were themselves involved in the
activities? Like the problem of corruption, this country is
trapped in a vicious cycle in dealing with smuggling, knowing
full well the damage it is inflicting on the nation but unable to
act decisively against the culprits.

Like corruption, smuggling is undermining the country's entire
economic recovery program. And judging from media reports on
smuggling these last few months, the situation is getting worse.

So the entire nation continues to watch helplessly as the
country rots and advances on the present path towards self-
destruction. This cycle must sooner or later snap. And unless the
government takes decisive action to once and for all declare a
war on smuggling, the cycle will be broken for the worse and not
better.

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