Trade Trials in Indonesia: Unveiling the Complexities of Customs and Corruption

In my years of business ventures, there's one particular episode that stands out amongst the many, a tale from my time in Indonesia. It's a story of importing bottled water equipment for a new factory, an endeavour that brought me face to face with the intricacies of bureaucracy and the shadowy world of corruption.

The journey began with the legal route, the path of utmost transparency and compliance. Importing the equipment was no small task; it involved mountains of paperwork and a painstaking process that extended over six weeks. But I was committed to doing it right, playing by the rules.

Yet, as the saying goes, "No good deed goes unpunished." Accusations flew like wildfire, with authorities claiming that I was importing cocaine, when in reality, it was nothing more than bags of chlorine. It soon became apparent that this was nothing but a ploy to extract more money, a tactic to pad the pockets of those in power.

The import costs and fees piled up, eventually reaching a staggering $6,000. It was a bitter pill to swallow, but it seemed like the cost of doing business in this part of the world. I couldn't help but feel that I was caught in a never-ending maze of red tape.

The next time I imported a similar container load, I begrudgingly opted for what locals refer to as the "back door route." It involved a direct payment of $6,000 to a mysterious figure known as a "Customs Official." The paperwork was negligible, and the container arrived at our factory's doorstep just four days after landing. The icing on the cake? A police escort to ensure its safe passage.

What was once an intricate dance with bureaucracy had transformed into a swift, if ethically questionable, transaction. It was a stark reminder of the prevalence of corruption in certain corners of the world. In Indonesia, it seemed that the back door was often the quicker and more convenient route, albeit at a moral cost.

However, the story doesn't end here. The Indonesian government recognised the rampant corruption within its customs department and took a bold step. They engaged a Swiss company to restructure and oversee all imports. This move aimed to ensure fairness, transparency, and the collection of rightful duties.

Surprisingly, or perhaps not, this initiative was hugely successful. Imports flowed more smoothly, and it appeared that the tide of corruption was being stemmed. Yet, as with many well-intentioned efforts, it was short-lived. The usual private pockets that had previously been lined started to feel the pinch.

Sharing this story, I want to highlight the myriad challenges businesses can encounter on an international scale, no matter where they choose to operate. While we all strive for the journey to success to be underpinned by integrity and transparency, there are times when we must adapt like a chameleon, subtly altering our approach to fit new landscapes—even if it means making small compromises to our core values.