Transportation Minister Budi Karya Sumadi, far right, Finance Minister Sri Mulyani Indrawati, second from right, Attorney General Sanitiar Burhanuddin, second from left, and Police Chief Idham Aziz, fourth from left, pose for a photo around a smuggled Porsche at the Tanjung Priok Port in North Jakarta on Tuesday. (B1 Photo/Carlos Roy Fajarta)

Gov’t Reveals Rampant Luxury Vehicle Smuggling Involving Seven Companies

DECEMBER 18, 2019

Jakarta. Indonesian authorities revealed on Tuesday attempts to smuggle 19 luxury cars and 35 foreign motorcycles into the country through the Tanjung Priok Port, involving at least seven companies over the last four years.

Finance Minister Sri Mulyani Indrawati led a joint press conference at the North Jakarta port in the rainy afternoon to detail the case and present the evidence, accompanied by Attorney General Sanitiar Burhanuddin, National Police Chief Idham Aziz and Transportation Minister Budi Karya Sumadi.

A Porsche, an Alfa Romeo and several BMW motorcycles were among the evidence presented to journalists.

“As you see in front of you, these motorcycles were smuggled inside containers arriving at the Tanjung Priok Port. Until today, we have confiscated 19 luxury cars and 35 luxury motorcycles,” Sri Mulyani said.

The stash of the smuggled vehicles is valued at Rp 21 billion, with a potential loss of Rp 48 billion in unpaid duties and luxury taxes.

“Normally, those luxury items are subject to a 40 percent import duty and a 125 percent luxury goods tax,” Sri Mulyani said.

“The smuggling of luxury goods really hurts the people’s sense of justice. Not only does it do harm to the state finance, but also to the social justice," she said.

The smuggling attempts between 2016 and 2019 have involved seven companies, identified by initials S.L.K., T.J.I., N.I.LD., M.P.M.P., I.R.S., T.N.A. and T.S.P. 

Fake Cargo Manifests

According to the government data, S.L.K. smuggled a Porsche GT3RS and an Alfa Romeo worth Rp 2.9 billion from Singapore on Sept. 29, while the customs manifest declared the cargo as refractory bricks. 

In another case, T.J.I. imported a Mercedez-Benz, a Jeep, a Suzuki Jimny, a Toyota Supra and several BMW and Honda motorcycles from Japan under fake cargo manifests mentioning auto components such as engine hood, doors and bumpers.

In December last year, the Customs and Excise Directorate foiled attempts by N.I.L.D. to smuggle a Ferrari Dino 308 GT4, a Porsche Carrera 2, and a BMW R1150 motorcycle from Singapore. The company has deliberately declared the items as auto parts and accessories. 

In October last year, M.P.M.P. smuggled a Citroen DS ID 19, a Porsche Carrera, a Harley Davidson FLST N, a BMW Motorrad NITE T, and three Volkswagen engines from Singapore, also falsely mentioning them as auto parts and accessories.

In November 2017, I.R.S. was caught smuggling a BMW M3 CSL, five Honda CRF 1000L motorcycles, a BMW R75/5 motorcycle and five Harley Davidson motorcycles from Singapore. The company claimed in the cargo manifest that the imported goods were telescopic ladders. 

Meanwhile, T.N.A. is accused of smuggling 13 BMW motorcycles and a Ducati in February 2017, with the cargo manifest mentioning mechanic tools. 

T.S.P. has allegedly smuggled a Porsche GT3RS, a Ferrari 250 GT and a Porsche Turbo in December 2016, while declaring them as auto parts to the Tanjung Priok customs office.

The attorney general said two suspects have been convicted for smuggling while five other were waiting trials.

Burhanuddin said his office will work closely with police and related ministries to launch a crackdown on rampant luxury vehicle smuggling.

"We will set up a special team to handle this case, which requires measured and rapid actions," Burhanuddin said.

In recent months, joint operations by the police and tax officials have been hunting luxury cars in Jakarta and Surabaya to collect taxes, keeping dozens of them in custody for a lack of valid documents.

Earlier this month, State-owned Enterprises Minister Erick Thohir fired flag carrier Garuda Indonesia president director I Gusti Ngurah Ashkara for smuggling a Harley Davidson motorcycle and two Brompton bicycles inside a brand new Airbus plane being delivered to the country from its factory in France.

 

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