What to do about our underwater treasures

What to do about our underwater treasures

By Amir Sidharta

JAKARTA (JP): Earlier this month, after the Indonesian Navy
successfully foiled an attempt to smuggle underwater treasures
recovered from Indonesian waters, State Minister of Social
Affairs Anak Agung Gde Agung recommended the preparation of
regulations on the preservation of cultural heritage.

Referring patriotically to our national heritage and history,
he suggested that the seized items be surrendered to the state
and placed in museums.

There is no question that Indonesia's cultural heritage should
be preserved, but Law No. 5/1992 on cultural heritage already
covers the relevant matters quite comprehensively.

The minister's comments make him appear unaware of the
regulation. In addition, it seems he is uninformed about the
actual types of objects that have been recovered and their
cultural value.

He is certainly unaware about the state of museums in this
country.

First of all, our museums do not have the necessary resources
to be able to accommodate the thousands of objects recovered from
the sea. If they are all placed in our museums, it would not be
long before most would become neglected and damaged.

Secondly, although known cumulatively as treasures, most of
the items are what is known as "market ware", ceramics that were
traded. Hence, they cannot be considered "museum pieces".

The government should collect unique pieces and the best
samples of the recovered items for academic research.

A selection can be kept and shown in museums. However, the
remainder should be utilized for the benefit of the nation in a
less conservative manner: they can be publicly sold, and the
revenues can benefit the government.

This is also not a new idea. Minister of Maritime Exploration
and Fisheries Sarwono Kusumaatmadja claimed last January that
underwater treasures can help pay Indonesia's debt. He proposed
the goods could be auctioned through international auction houses
to fetch millions of dollars.

According to Presidential Decree No. 43/1989, with the
exploitation of underwater treasures, the government is entitled
to 50 percent of the net (after taxes) profits from the sale of
underwater treasures.

Indeed, public auctions of the items would be the fairest and
most transparent manner to sell the goods. As they are open and
public, auctions are entirely transparent and completely fair.

In a Continental auction, in which the successful bid goes to
whoever bids the highest price, the highest possible price for
the piece at the particular time and the particular location
would be reached.

There is little question that the best way to publicly sell
the recovered underwater treasures is through auctions. By doing
so, the best price of the goods will be reached.

The big question is where the goods should be auctioned. Would
London or Amsterdam be the best place to auction the goods, or
would it be better off auctioning the pieces in Hong Kong or
Singapore? Or would it perhaps be best to auction them back home?

Recent reports said that some of the recovered items have been
illicitly auctioned abroad.

There is also a report that 43 containers of recovered
underwater treasures were unsuccessfully shipped to Australia,
and are now held by Australian customs.

It is not clear why the goods were shipped to Australia.

Certainly, there are advantages and disadvantages to
auctioning the goods in each location. We have to remember that
each location caters to different markets, depending on the
current trends and tastes of the particular markets.

Two items of the same kind might fetch different prices in
different locations.

Hence, it is important to place goods in locations where the
market for the specific goods is the strongest.

However, it is also important to consider that the placement
of the goods in the best locations could involve high costs and
risks. The goods might have to be transported to the best
location, insured at premium rates and stored there at high
costs.

Therefore, this also has to be taken into consideration. The
advantages and disadvantages of placing the goods in one location
or the other should be carefully studied before making decisions.

Specialists will be able to determine the price estimates of
the items in specific markets, and the costs and risks involved
in selling them at that particular market can be calculated. In
short, and cost and benefits study should be done.

Apart from the actual sales values of the lots, sales in each
location will affect the Indonesian government's fiscal revenues
from tax and excises in different ways. There are also indirect
benefits to auctioning the goods in Indonesia.

Although modest by comparison to the auction values of the
lots, auctioning the goods in Indonesia will also attract
visitors to the country.

More importantly, however, it will support a relatively new
chain of cultural industries and create much-needed jobs in this
crisis-torn country. This also should be studied and considered
carefully.

In the end, it seems clear that the best return would be
achieved through careful selection. A selection of items might be
auctioned in London or Amsterdam, with another batch going under
the hammer in Hong Kong or Singapore. It also seems logical to
simply auction the most commonplace items back home.

The other big question now is which government office has the
authority over the recovered underwater treasures. Is it the
authority of the Ministry of National Education or the Ministry
of Maritime Exploration and Fisheries? What is the interest of
the Office of State Minister of Social Affairs? The Ministry of
Finance also has a great interest in the matter.

Early in March, Minister for Maritime Exploration and
Fisheries Sarwono Kusumaatmadja said that in coordination with
the ministers of national education and finance, regulations
regarding the exploitation of valuable treasures including
recovered underwater treasures will be drafted immediately.

Since 1989, it has been the National Committee for the
Recovery and Exploitation of Treasures from Shipwrecks (Pannas
PPBB), under the coordinating minister for political and security
affairs, which has authority over underwater sea treasures.

However, it seems to have changed.

Sarwono stated later in March that the search for and auction
of recovered underwater treasures would be handled by a
management bureau involving the Ministry of Defense, Ministry of
National Education, Ministry of Communications and the Ministry
of Maritime Exploration and Fisheries. It seems that his
management bureau will become a new Pannas PPBB National
Committee which is just as inefficient as the one established
under the New Order government.

The Navy, which thus far has played a great role in not only
the safeguarding of the treasures but also the exploration for
them, seems to have an interest as well.

Navy Chief of Staff Adm. Achmad Sutjipto suggested the
committee be merged under the Ministry of Maritime Exploration
and Fisheries.

It seems inevitable that the authority will involve more than
one ministry, but the admiral is on the right track: in this day
and age, the simpler the better.