Indonesia automates import tax collection

Indonesia's tax office has appointed Citi as its agent bank for import tax collection, shifting all collection processes to the bank's online payment portal.

Under the appointment, all import tax payments will be made through Citi's ePib (electronic Pemberitahuan Impor Barang or electronic Import Goods Notification) electronic payment platform. The platform eliminates traders' need to physically file documentation with both banks and government agencies by enabling them to submit all payments and documentation online.

"Through an online system, both business and government agencies can effectively process the payment of taxes," says Bapak Susiwijono, technical implementation head of the Indonesia National Single Window (INSW) team. "The government has set up the integrated Indonesia National Single Window to speed up the customs clearance process," Susiwijono says.

Launched in 2007, INSW is an electronic processing system that provides traders with services such as online customs declarations, country-wide import permits and online payment confirmation at five of the country's ports and 15 government agencies. The system aims to improve the efficiency and transparency of Indonesia's customs processes.

Citi's ePib system is beneficial to both traders and the Indonesian government. "It's important for our corporate clients to find ways to manage their operational costs and company bottom line especially in today's tough business conditions," says Citi Indonesia trade and treasury solutions head Novianti Hardi. "That is why we developed this product to help clients achieve more efficient and speedy transaction services by simplifying the procedure of tax payments for imports."

Documents submitted through ePib are electronically sent to Indonesia's customs office and Citi. The system will reduce document processing time to around two hours from one day.

Indonesia's expansion of INSW coincides with the roll-out of the Asean (Association of Southeast Asian Nations) single window due to be complete by 2012. According to Asean, the single window will create a single customs submission clearance system for all 10 Asean member countries. The system will reduce clearance times to 30 minutes from their current maximum of five days.

Asean's single window was scheduled to be implemented in Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand by the end of 2008. By the middle of last year, a pilot single window was underway, while individual countries, including Indonesia and Singapore, had launched their own single windows.