Monday, December 19, 2005

Indonesia immigration mafia embezzled US$20 million per year

Immigration mafia, consisted of brokers, immigration officers, and security guards managed to embezzled at least US$20 million per year of tax payments from Indonesian passengers with overseas destination. Who are the beneficiary owners?
This is how the mafia works. First of all, a broker come after a passenger at the airline check-in counters and offer the service, i.e. pay tax at discount of 20%. By law, people have to pay the tax of Rp1 million per overseas trip. The broker will fill the form, tax-free, but passengers should pay Rp800,000. As a bonus, passengers with such service are excempted form long queue at the immigration check-point.
According to minister of finance Sri Mulyani Indrawati, every year around US$20 million of the tax payments went to the mafia coffers in Jakarta's International Airport alone.
President Susilo Bambang Yudhoyono said that the government is set to fight against irregularities at the immigration offices which have become a very serious problem.
He said that immigration affairs is a fundamental and serious problem that needs serious, fast and accurate handling.
"I have received reports on irregularity practices in the ranks and files of the immigration office at home and abroad," Yudhoyono said.
Police is investigating the mafia. Thouh I'm bit skeptical, I reserved hope that police could uncover and punish The Dons, not just small-time brokers and security guards at the check-point. Police should investigate the flow of the embezzled money down to the beneficiary owners.




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