Illegal tires cause Rp 1.6t in state losses per year

A businessman has estimated that the country loses around Rp 1.6 trillion in revenue per year because of distribution of 2 million illegal tires nationwide.

“The assumption of state losses is based on the tire prices which average Rp 800,000,” Indonesian Tire Producer Association chairman Aziz Pane told tempointeraktif.com recently.

Aziz blamed the rampant distribution of illegal tires on the government’s poor supervision of non-SNI (National Standard) products.

“When we raised the matter to the Customs and Excise Office, they said that Indonesia had a lot of seaports which they could not cover,” Aziz said.