RI WORKING ALL-OUT TO PREVENT ENTRY OF ILLEGAL GOODS

By Andi Abdussalam

Jakarta, Nov 18 (ANTARA) - Indonesia is now making all-out efforts to ward off a possible influx of illegal imports amid the global financial crisis.

        While centralizing the entry points of imports, strictly supervising the flow of commodities and restricting the importation of certain goods, the government is also closing at least 46 seaports scattered across the country's archipelagic territory comprising 17,000 islands.

        The government intends to centralize the points of entry of foreign-made goods susceptible to smuggling in order to simplify their supervision.

        "I want the customs directorate general to secure import activities and consider the possibility of centralizing the points of entry of certain commodities," Finance Minister Sri Mulyani said.

        She said the certain commodities she meant were those easily smuggled into the country such as electronics and textiles.

        Indonesia is losing US$600 million annually in unpaid taxes on illegally imported textiles and textile products.

        Therefore, the government will restrict the importation of certain commodities and centralize the entry points of imports.

        The decision to restrict imports was taken as part of the government's ten-point policy to cope with the current financial turmoil, which was announced in a limited cabinet meeting last month.

        Commodities whose imports will be restricted are garments, electronics, food, drinks, toys, and footwear. These goods can only be imported by licensed/authorized importers on condition the goods have been verified at their ports of origin.

        Besides, their entry points are also centralized in five main seaports. Centralizing the points of entry for those goods meant they could be imported only through certain ports in Indonesia.

        Imported commodities will be unloaded only at certain designated ports, namely Tanjung Priok in Jakarta, Tanjung Emas port in Semarang (Central Java), Tanjung Perak port in Surabaya (East Java), Belawan port in Medan (North Sumatra), Makassar port in South Sulawesi, and at two airports, namely Soekarno-Hatta and Juanda aiports.

        In the meantime, the Ministry of Transportation ordered the closing of 46 unofficial seaports which were believed to have been used as entry points for smuggled goods.

        "We are ready to close about 46 seaports," Transportation Minister Jusman Syafii Djamal told the press on Monday.

        The minister said most of the ports were located in Riau Islands and Batam. He had ordered port administrators of Belawan, Tanjung Priok, Tanjung Perak and Makassar to take firm actions and close illegal ports in their respective areas.

        Belawan port administrator Jimmy Nikijuluw said he was ready to close illegal ports in his area. "It is just a matter of time. We are going to close them," he said.

        Sea Director General Sunarjo said meanwhile port administors were working hard to collect data for closing the ports. "They are collecting data and will soon take action", he said.

        Aside from the government's efforts in closing illegal seaports, the Directorate General of Customs and Excise is also ready to anticipate the influx of illegal imports in the current global economic meltdown.

        Director General of Customs and Excise Anwar Suprijadi stated his office and its units in the field was ready to anticipate illegally imported goods from the US and Europe in the wake of the monetary crisis in those two parts of the world.

        "The customs office has anticipated the illegally imported products including those ordered from the US and Europe," Suprijadi said.

        Since the outbreak of the global financial crisis, many product orders from the US and Europe had been canceled.

        Thus, concern has arisen that canceled exports to the US and Europe are being diverted to Indonesia. The government is urged to take strategic steps and increase supervision over the possible entry into Indonesia of illegal textile and textile-products.

        "There are many countries which export textile and textile products to the United States. With the closure of the export market in the United States, it is not impossible the exporting countries will divert their exports illegally to Indonesia," Ina Primiana of the University of Padjadjaran said.

        The United States has been the main textile and textile product market of producer countries in Asia and Europe.

        With the drop in textile and textile product transactions in the United States, the producer countries would divert their exports to new markets, and Indonesia with its large population would obviously become their target.

        Accordng to Benny Soetrisno, chairman of the Indonesian Textile Producers Association (API), the increasing inflow of illegal textile and textile products was causing the Indoensian state a loss of about Rp600 million per annum.

        Therefore, the entry points of imports must be centralized so that goods entering the country would be supervised easily. The five main ports will serve as the main entry points.

        "Goods arriving at other ports will not be allowed in. So, for instance, any foreign-made textile shipment entering through other ports will be considered illegal and this will simplify supervision," Minister Mulyani said.

        The minister said reducing illegal imports and smuggling was a step to anticipate a glut in imported goods as a consequence of shrinking world markets.

        In order to carry out supervision in the country's territorial waters which cover at least 17,000 islands, the government is to establish a sea and coast guard force.

        "If everything runs as planned, we will have set up the Indonesia Sea and Coast Guard at the end of 2009," Transportation Minister Jusman Syafii Djamal said. (T.A014/A/HAJM/A/S012) 18-11-2008 14:58:44