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Jakarta Post

Joint forces foil raw mineral smuggling attempt

(Documentation: Kompas

Ayomi Amindoni (The Jakarta Post)
Jakarta
Mon, November 9, 2015

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Joint forces foil raw mineral smuggling attempt (Documentation: Kompas.com/Icha Rastika) (Documentation: Kompas.com/Icha Rastika)

(Documentation: Kompas.com/Icha Rastika)

The government has foiled smuggling attempt of raw minerals and TPT (textiles and textile products) in the last three months, helping the state avoid potential losses of Rp 77.1 billion (US$ 5.65 million).

Finance Minister Bambang Brodjonegoro said cooperation between ministries and agencies was forged in response to an instruction by the President to combat smuggling and protect local industries.

"Potential losses of Rp 3.3 billion came from unpaid import duty on textiles and a further Rp 73.8 billion from illegal raw mineral exports. If they had managed to pass through, the local textile industry would have been affected and raw mineral downstream projects would have been disrupted," said Bambang at a press conference on Monday.

He further explained that the customs and excise office found four containers of textiles and textile products imported from China by PT KHYI. The company allegedly violated customs regulations by unloading the goods while under customs supervision and falsifying documents.

The office also found 80 containers containing raw minerals from West Java, East Java, Maluku and Sulawesi ready to be shipped overseas, such as to the Netherlands, Taiwan, Korea, Hong Kong, India, Singapore and Thailand.

"The illegal exports and imports were thwarted by the customs officers and the police at Tanjung Priok Port, North Jakarta," Bambang said.

According to customs and excise director general Heru Pambudi, the attempted smuggling of raw minerals involved 21 exporters and was the biggest case of its kind in the last three months.

The exporters tried to deceive officers by reporting false amounts and types of goods and submitting falsified customs declaration documents.

"The government policy to restrict raw mineral exports led those people to the smuggling attempt," Heru said.

"If illegal exports continue they will disrupt the country'€™s downstream program as the construction of smelters will fail," said the minerals and coal director general at the Energy and Mineral Resources Ministry, Bambang Gatot Ariyono.

National Police chief Gen. Badrodin Haiti said the police assisted customs officers in the cases as offenders had resisted custom officers' attempts to check the goods.

"It [illegal exports and imports] is usually done through small ports. It was one of our concerns so we launched a joint operation, which was supported by the Navy," he explained. (ags)

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