Posts Tagged ‘departure tax’

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The ‘Express’ KITAS Renewal Process

May 20, 2012

Knowing that I could not travel for a few months, I grudgingly surrendered my passport and soon-to-be-expired KITAS to the Immigration office. Of course the usual raft of paperwork had to accompany this, including solemn written promises that I will employ Indonesian staff, that I will live in an approved tourist zone, and that I will not, under any circumstances, engage in gainful employment. Truth be told, I actually welcome this latter injunction, as it validates my choice to live a life of slothful drifting from one day to the next. In fact, I have no idea how I ever managed to fit work into my daily life before coming here.

As in previous years, I was a little worried about not having my travel documents while the tedious process of KITAS renewal dragged on for several months. One can’t travel at all without documents – not even within Indonesia, where ID is mandatory. The supposed 12-month KITAS which I pay for is not really usable for the whole year anyway. Not that that matters, because the essential Multiple Entry and Exit passport stamp is now only valid for eleven months, because the authorities have decided that they don’t like you travelling during the final month of your KITAS term …

Two years ago, it took two and a half months for the renewal process, because my documents were ‘lost’ – and then the official who had to sign off on them was ‘on leave’. Last year the process was incredibly protracted because the Immigration Office was being investigated by the anti-corruption people, during which time most of their normal work – glacially slow at the best of times – ground to a halt. Ironically, it was suggested to me that a ‘facilitation fee’ might speed up the process, but given the reasons for the low work output, I thought it best to decline.

This year, I planned, perhaps optimistically, for a eight-week turnaround. Naturally, only five days after feeding my entire legal identity into the maw of the Immigration Office, I found out at 9am on a Monday morning that I needed to travel urgently to Australia to help out a friend who had been incapacitated in an accident.

Luckily, I have an excellent agent, who immediately put in an urgent request for ‘express processing’. By 11am, I was in the Immigration Office being fingerprinted yet again, presumably because my fingerprints had changed in the intervening twelve months. I was told that processing would take about a day, so I couldn’t travel on Tuesday, but was assured that I could pick up my completed travel documents by noon on Wednesday. The nice official told me that it would be quite OK for me to book  a flight for Wednesday afternoon. The only flight I could get at short notice was via Jakarta, which meant that I had to be at the airport by 5pm on Wednesday. With Bali’s notorious traffic, I had to leave home by no later than 4pm.

But by noon on Wednesday, there is no sign of my passport or KITAS. I feign stoicism until 1pm, when I call my agent. She says my passport “is on its way and will be there this afternoon”. I begin to worry; “this afternoon” is a rubbery concept in Bali.

At 3pm, my rising stress levels making my voice rise an octave, I speak to my agent again. With insufferable calm, she says: “They’re still waiting for a signature at Imigrasi”. Ye gods. At 3:05pm, she tells me my documents will be arriving in 40 minutes. She also chooses  that moment to inform me that I need to bring 1.5 million with me for the express processing fee. Oh, wonderful. Three hours ago I discovered that my debit card has stopped working at all of the ATMs I tried, and I have just enough cash for the taxi, a humble snack and the obligatory departure tax.

At 3:45pm, not game enough to call the agent again because my voice is approaching ultrasonic frequencies, I hurtle over there on my bike. Praise be to The Great Squirrel! My passport and KITAS has just arrived! The agent apologises for the delay, explaining that, only that morning, a team of workmen had unexpectedly descended on the Immigration offices to perform ‘unscheduled maintenance’, which stopped all work. I am so speechless that I brush off her request for money and rush back home to call a taxi, finally departing for the airport, my stomach full of hydrochloric acid, a mere half an hour behind schedule. But I have my passport back!

On the way to the airport, I puzzle over my itinerary, which doesn’t tell me whether I leave from the domestic or the international terminal. The cab driver laughs. “If you transit in Jakarta, you go from domestic terminal”, he says assuredly. I am sceptical; after all, isn’t it a normal international flight with a stop-over? “No”, says the cabbie. “This is Indonesia. You go from the domestic terminal, because that way you have to pay 40,000 departure tax, and another 150,000 when you leave Jakarta.” He grins wickedly. “The government likes that.” Oh, of course. Why didn’t I think of that?

So, finally on the plane, I have time to think about how it is possible, for extra money, to get a two-day KITAS renewal instead of waiting for two months. And I realise why it normally takes that long for us normal schmucks to get one – because the full resources of the immigration department are engaged in making money from the express delivery set.

Some might think that it’s almost like a sort of, er, bribe. But when you need something done right now, and people have to make a special effort to make sure you get it – well, I reckon paying a fast-tracking facilitation fee is worth it. Despite the last-minute panic, it certainly was for me.

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Cruise Customers Climb, But Venal VOA Vexes Visitors

March 12, 2012

Bali’s cruise tourism market is showing signs of significant growth in the last decade. In 2002, the number of cruise ships arriving in Bali was 20. This year, it has hit 90 and rising. As usual, the hype surrounding this sector of the tourism market is relentlessly upbeat, focusing as it does on the expected flood of money into Bali, based on projections assuming untold thousands of free-spending passengers deliriously spending vast amounts of cash.

It would be wonderful if this was to actually happen, but the combination of appallingly bad planning, sub-standard construction, lack of proper cruise industry infrastructure, and the venality of the central government could well turn the hoped-for cruise bonanza into a pipe-dream. Another triumph of greed over practicality.

The much-vaunted Tanah Ampo International Cruise Terminal in Karangasem, East Bali has proved to be a massive embarrassment. Apart from being situated so far from the main tourist and shopping precinct in South Bali that a shopping trip is impossible during a 12-hour layover, it was not even designed or constructed properly. No-one seems to know why the pier, originally planned to be 308 metres long, mysteriously shrank to only 154 metres during the final construction phases – way too short to accommodate most cruise ships. And the attached passenger pontoon was of such shoddy construction that it disintegrated a few weeks after being built. One consequence was that in 2011, the Sun Princess, carrying 1,950 passengers, had to divert to Benoa because of the potentially dangerous disembarkation situation.

In February of this year, the  MV Aurora, carrying 2,800 passengers and crew, could not pick up its passengers after their day visit because the new, improved, ‘re-built’ pontoon collapsed again. Passengers were stranded on the pier for over 6 hours. The ‘International’ cruise terminal was not equipped to provide any food, water or shelter while an inevitable rainy-season storm drenched the unhappy passengers. This is not good PR, and needless to say, many visitors left with a very negative image of Bali.

But let’s assume that all these problems are miraculously fixed, and that cruise ship passengers are somehow presented with a truly professional experience at both of Bali’s main cruise ports of Tanah Ampo and Benoa. Would the expected economic benefits then manifest themselves? Will 2,000-odd passengers disembark in the morning and go on a massive spending spree for 8 hours before returning to ship-board life?

It doesn’t look like it. The data from the Benoa Port Office show that only 20% of passengers disembark for a typical one-day stop, and that they spend an average of $45 USD each. That’s not what you call big money. By comparison, Wellington, New Zealand, reports an average daily spend of $141 per day per passenger when in port, and a lot more people. Even Jamaica claims $90 USD. Of course, with cruise lines promoting a self-contained experience on-board, nobody expects all passengers to take the opportunity to make landfall, yet the number actually getting off the ship here, and their daily spend, seems very low.

I spent a day recently with a cruise ship passenger who arrived at Benoa at 6.30am. Because the Benoa pier is another one that is too short for major liners, passengers are brought to shore by ship’s tender, a process requiring advance booking and a lot of waiting. They are dropped off in an area which is confusing for first-time visitors, who are immediately surrounded by hordes of insistent taxi touts demanding outrageous fares for the relatively short trip to the shopping hot-spots. I had sent a driver to pick her up, but even so, pre-booked drivers were restricted to waving their signs from behind a high fence. From her description, the chaos in the port arrivals area made Denpasar airport look like Changi by comparison.

She said that few of her fellow passengers opted to come ashore, many baulking at paying the $25 USD Visa On Arrival fee. For 6 or 7 hours in Bali, it’s simply not worth it. The standard VOA is valid for 30 days. You can enter Bali for half-an-hour if you like, but you will pay the inflexible, one-size-fits-all visa fee of $25 USD. Why? Well, just look at the revenues. In the first nine months of last year, VOA fees for entry to Bali (mainly through the airport) amounted to more than $42 million USD. How much of that stays in Bali, to provide for tourism infrastructure? None of it. It all goes straight to Jakarta. Don’t expect cheap one-day cruise ship visas any time soon – I don’t believe Jakarta officials would sacrifice a single dollar of their VOA revenue to grow this sector of Bali’s tourism industry,  because there would be nothing in it for them.

Another passenger reports that on arriving back at the port for departure , a helpful chap offered to help him find his way back to the correct tender – for free! Naturally, he was delighted, until he was led to a small shack where yet another helpful chap (no doubt a cousin) relieved him of 150,000 rupiah ‘Departure Tax’ and took him to his boat. Only later did he realise that there is no ‘departure tax’ payable at ports …

Of course, back at the airport, the VOA scams are still alive and well. The officials who embezzled over $300,000 USD by misreporting $25, 30-day visa fees as $10, 10-day visas (and pocketing the difference) were rapped on the knuckles and sent back to work. The government’s solution to their corrupt behaviour was to charge us all $25 now, regardless of length of stay. Now reports are coming in of a new wrinkle, where tired passengers arriving after long-haul flight are told, “You are from Europe. You must pay 25 Euro.” Those who protest that it should be $25 USD are told, “That is only for Americans.”

Oh yes, there is the transit mess as well. If you think you are ‘transiting’ through Bali, say from Darwin to Kuala Lumpur, make sure that you have a ‘fly-through’ ticket. If you travel on a cheap point-to-point carrier, you actually have two journeys. On arrival at Bali, you will have to purchase a $25 VOA for your proposed one-hour stay in Bali, clear immigration, collect your bags, clear customs, exit the airport and walk 200 metres to the departures area, where you will have to check in, pay 150,000 departure tax, clear immigration and board your connecting flight. That’s if it hasn’t left during this lengthy process. That’s because you are not ‘transiting’, you are ‘transferring’, which involves a world of pain.

If you are genuinely ‘transiting’ – that is, your bags are checked through and you have a boarding pass for the second leg, you should be right. Just get off the plane and go to the transit lounge to wait for the connecting flight. However, rumour has it (unsubstantiated, I hasten to add) that the Bali transit lounge has been closed during airport renovations. If this is true, you will need to purchase a $25 VOA … get the picture? Just skip back one paragraph for the full saga if you need to be reminded.

Anyway, that’s the airport. We all know what a disaster area that is. But back to my main thread about the way cruise visitors are being treated – which is with an incredible lack of vision for the future. It is without a doubt, a potentially lucrative sector of the tourist industry for Bali. So why are the local authorities being so completely amateurish about growing it? Why didn’t they build a proper, professional-standard cruise terminal in East Bali? Why are they not lobbying Jakarta for the immediate introduction of a cheap one-day entry permit for cruise passengers?

Why do I even hope that things will ever change in the torturous labyrinth of Indonesian officialdom?

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FISKAL: It’s on, it’s off, it’s on again …

October 17, 2010

Hey Jakarta! I’m confused. OK, OK – it’s a normal state for this bule pikun, but I’m even more confused than usual about conflicting reports about FISKAL from various news sources.

FISKAL, for those who have never had the pleasure of being ensnared in its tentacles, is a departure tax levied on local residents, and on those expats who have temporary resident status, such as a KITAS. This is completely separate from the Airport Departure Tax of 150,000 rupiah, and must be paid by every resident who leaves the country.

A year and a half ago, FISKAL was 1,000,000 rupiah. Then, in a cunning move designed to get people in to the often-avoided tax system, the FISKAL was raised to 2.5 million rupiah, UNLESS one had registered with the tax authorities and been issued with an NPWP card as proof of membership in the Indonesian Tax Club. Once you have an NPWP card to flash at the boys at the airport, you are exempt from having to pay FISKAL.

I have an NPWP card which exempts me from FISKAL. This is crazy in itself, as I have a Retirement KITAS which prohibits me from working in Indonesia, which means no income, which means no tax. I still have to submit monthly and annual tax returns stating that I am a person of zero income status. But I have my FISKAL exemption, which was the aim of the charade in the first place and this is a Good Thing. At least I thought it was.

A news item in the Jakarta Post on  17 October 2010 [ http://tinyurl.com/29mbsy8 ] announced, with not a little fanfare, that FISKAL is being scrapped for everyone from 1 January 2011. Yippee, I thought. Closer reading however, reveals that it is being scrapped for taxpayers only. In other words, there is no change in the status quo. That’s newsworthy?

One week later, an acquaintance’s agent, someone who is presumably supposed to know the convoluted workings of Indonesian bureaucracy, informed him that new regulations require that everyone, including KITAS holders, pay FISKAL.

Is there ANYONE out there who knows what is really going on?