TEMPO.CO, Jakarta - Directorate General of Customs and Excise of Finance Ministry planned to open up cross-border department stores in several border areas of Indonesia. The construction of logistics and staple goods center in the border aimed at reducing practices of smuggling and misuse of facilities.
The government initially allowed people living in the border areas to shop and fulfill their daily needs across the country’s border. For example, people in Entikong, Kalimantan, commonly went shopping in Malaysia and people in Timor Leste and Papua New Guinea could buy their basic needs from the Indonesian market. However, the facility was abused by traders to avoid import duty and tax.
“So we now move the store to the country,” said the director-general Heru Pambudi in the Customs and Excise Office, Jakarta, Wednesday, July 3. Thus, he added, people would make a purchase without import duty and tax.
All transactions in the department store would use the Indonesian currency, the rupiah. The duty-free value would be US$300 per person per month for Papua Nugini, RM600 per person per month for Malaysia, US$250 per person per month for the Philippines and US$50 per person per day for Timor Leste.
Additionally, people who have the right to make purchases in the cross-border store are only locals who possess cross-border identification card and those who have their fingerprints registered.