Allegations Of Leading Tuna Export Corruption, IAW Highlights HS Code Gap

Illustration of tuna catching fishermen (Between)

JAKARTA In the midst of national pride for being the world's largest exporter of tuna, the Founder Secretary of Indonesian Audit Watch (IAW), Iskandar Sitorus, revealed allegations of corrupt practices that cost the state up to trillions of rupiah. Iskandar's criticism arose after the Minister of Finance Purbaya Yudhi Sadive conducted a surprise inspection at Tanjung Perak Port, Surabaya.

So far, Indonesia is proud to be called the largest tuna exporter in the world. But behind it is the smell of alleged corruption of trillions of rupiah," said Iskandar, Sunday, November 15.

According to IAW data, at least 10 corporations are suspected of playing the export gap for whole tuna in the form of whole round, with the two largest companies with the initials PT PBN and PT GEM. They take advantage of an administrative gap through the HS Code 03034300 on the Customs system code which according to Iskandar has become a roadway' for exporting whole fish that should be prohibited by law.

"This shows that the institution that has just been commanded by Pak Purbaya from Lapangan Banteng failed to detect irregularities," said Iskandar.

He explained that one HS code was used for different types of products, ranging from precooled loin to fishbone meal, even though the added value and process were not the same. This condition opens up a smuggling space under the guise of different nomenclatures.

"For example, the export of Skipjack or Bonito whole round can pass only because it uses the HS Code 03034300, even though it should be used for frozen processed products," said Iskandar.

Furthermore, he assessed that Customs and Excise was unable to carry out a comprehensive post audit or carry out risk mitigation through physical examination and adjustment of the code of goods. He emphasized that the Law on Fisheries UU 31/2004, Law 45/2009, and the Job Creation Law "secured management obligations in the country before the product was exported.

"Policies prohibit complete exports are a form of protection for domestic industries. But in the field it is violated because of the technical gap in the HS Code," he said.

Iskandar also highlighted the weak coordination between institutions such as KKP, Customs and Excise, and Fish Quarantine, so that regulations whose nationalist spirit actually collided with the technical implementation of the HS Code which was liberal and loose.

He added that the findings of the Supreme Audit Agency over the past decade show consistent deviation patterns: fisheries PNBP is not optimal, there are many uncharged levies, and the recorded export value is not in accordance with the real value of goods.

"The impact of the state is the loss of trillions of rupiah," he explained.

Iskandar called the lobster seed export scandal a precedent for how the technical loopholes could penetrate the substantive ban. According to him, the same pattern is repeated on the export of complete tuna through the single HS Code which is the backdoor for the legalization of smuggling'.

Based on these findings, Iskandar called for the government to move quickly. He recommended Customs and Excise to carry out a full physical check of all exports with HS Code 03034300 and directly verify the KKP permit to ensure that the company actually has processing facilities.

He also encouraged the formation of cross-ministerial task forces to monitor high-value marine commodities such as fish, lobsters, and seaweed. "If this is carried out, the potential loss of IDR 2 to IDR 5 trillion per year can be stopped," he said.

Iskandar closed his statement with calls for the government not to remain silent.

"If BPK, Customs and Excise, KKP, and law enforcement officers follow up on this together, Indonesia can really maintain its sea added value. The state must not lose," he concluded.