Authority strives to close batams smuggling gates By : batam correspondent The agency for batam free trade zone

and free port ( BP batam ) is seeking the most effective ways to end the operations of illegal ports around the island, which has been used as entry gateways for smuggled good from overseas, including form neighboring singapore. These illegally opereted ports have facilitated the illegal inflows and outflows of goods through batam. Bp batam is outlining a format for controlling those illegal ports, in cooperation with the customs and excise office. So far, no concrete action has been taken againts them, i wayan subawa, a member of BP batam in change of facilities and infrastructure told media. The authority and local police admitted hardship in dealling with tens of illegal ports on batam and its surrounding islands, but they have asked locals to cooperate in combating smuggling that have caused losses in state revenue. However, it will still be difficult as the existence of these ports has given significant contribution to local people. The explains why local authorities remain reluctant to take harsh action against the ports. In fact , the riau islands police have made public its plan of taking stricker actions againts 100 illegal ports on batam, bintan dan karimun in order to supports the implementation of free trade zone programs in the areas. So far, there ports have been declared as legal gates for the inflow and outflows of goods on batam, namely terminal batu ampar, terminal sekupang dan terminal kabil. Importers and exporters who undertake loading and offloading of goods outside the three ports will be fined in accordance with the existing goverment regulation, wayan said, referring to PP no 2/2009. Restrictions have also been made, including obliging importers who wish to bring goods into batam free trade zone the obtain special permits from bp batam, to ensure that the good are included in the lists of goods allowed by the agency Article 3 of PP NO. 2 / 2009 regulates the control over imports and exports of goods in the FTZ, the importation of goods from outside the customs and excise zone to the FTZ can only be undertaken by entrepreneurs who have obtained business permits form the agency for aone development. Entrepreneurs can bring into the free trade zone only goods that are needed for their bussinesses. The volumes and types of the goods must be decided on by the agency for zone development. An offical at batam municipality in charge of the economic development in the area said that 30 percent of batams economic development was supported by illegal businesses like smuggling, money laundering, trafficking and other illegal businesses.

A representative of the indonesian chamber of commerce and industry ( kadin) for batam chapter urged the batam goverment to take strict action against all illegal ports in the area and its surrounding vicinity that have played role for illegal businesses. Additionally , those running the illegal ports have not paid taxes, retributions , import duties and so on.