T

he 2003 government regulation on value-added and luxury taxes was powerful enough to stop the smuggling of used, luxury cars from Singapore to Batam as it also bans such imports.

However, smuggling activities have recently been on the rise again especially since Batam was designated as a Free Trade Zone (FTZ) area together with the neighboring Bintan and Karimun Islands.

"A 2005 Toyota Harrier is only $13,000. Pay $3,000 in advance and the rest once the car arrives in Batam. But the buyer is safe, right?"

This SMS from Singapore was shown to The Jakarta Post recently by a prospective buyer of a smuggled car.

It is widely believed that the authorities, especially the police, are actively involved in the smugglings.

People marketing the smuggled cars ensure that despite lacking proper documentation and only using license plates, these cars would never be nabbed during traffic inspections and raids.

Even if a car is nabbed, the owner has only to wait for a couple of hours and provide Rp 200,000 (US$19.59) as grease money to get the car out of impoundment.

"If you want to buy an illegal car, pick a luxurious one. Don't limit yourself," said Michael, a businessman who was often offered such cars.

"Don't worry about raids or inspections. The sellers will help you to retrieve your car."

The enactment of the Government Regulation No. 63/2003 once managed to totally curb car smugglings from Singapore.

Now it has risen again with the FTZ status despite the central government's decision to keep applying value-added and luxury taxes on electronics, vehicles and liquors.

Only brand new cars are allowed to be imported into Batam.

The rise in car smugglings could be seen Wednesday when the police seized 12 used, luxury cars from Singapore in one of Batam's seaports.

The police have yet to reveal the mastermind behind the shipment.

Batam, Rempang and Galang City Police chief, Adj. Sr. Comr. Leonidas Braksan denied Sunday the involvement of his officers in the smugglings.

"We will raid all luxury cars in Batam to ensure its legality," he told the Post.

"The public should not feel disturbed if their cars are stopped by police officers.

"It is part of our efforts to ensure that the police are not involved in this or protecting illegal cars."

Batam city councilor Yudi Kurnain said Batam police leaders should have checked their force instead of paying mere lip service.