Transportation Ministry bows to pressure over cargo policy

JAKARTA. In a clear response to mounting criticism against his decision to appoint new six cargo inspection agents to monitor the flow of cargo at Soekarno-Hatta International Airport, the Transportation Minister Freddy Numberi met with the leaders of the Indonesian Chamber of Commerce and Industry (Kadin) and other business associations at his office on Wednesday.

Speaking to reporters after chairing the meeting, the minister revealed that they had agreed on the establishment of a special team to oversee and improve the implementation of the new air freight security management system.

He hoped the team would be able to establish a mechanism that would be acceptable to all.

“We will establish a team to find a better way to implement the new system and deal with existing problems, including the cargo inspection tariff,” the retired vice admiral announced.

The ministry also called upon companies experienced in cargo inspection to apply for temporary inspection licenses. The move aims to anticipate and prevent delivery congestion within and among the six regulated agents, namely: PT Angkasa Pura II; Birotika Semesta; Pajajaran Global Service; PT Ghita Avia Trans; PT Duta Angkasa Prima Kargo; and PT Fajar Anugerah Semesta.

The quarrel over the new air freight system emerged recently after the ministry’s Air Transportation Directorate General introduced air freight security management. Its purpose is to ensure the security and safety of both cargo and the transporting planes. Next year the government plans to expand the policy to other airports.

The rule requires authorized regulated agents, instead of warehouse operators, to scan every package with x-ray machines.

The market, however, reacted differently because it means higher costs. Business associations oppose the new system, saying it is time consuming. It also raises inspection costs from Rp 60 (less than US$ 1 cent) per kilogram to between Rp 600 and Rp 850.

The ministry previously said that all agents had to set inspection prices between Rp 250 and Rp 600.

Freddy said that the team, which would involve his ministry, Kadin, business associations, the Trade Ministry, the Finance Ministry and the six newly appointed agents, would try to set lower prices, which would benefit all parties.

“I hope the tariff won’t be more than Rp 100 per kilogram. The team will cooperate with all parties affected by this matter in order to ensure that there are no further protests after the new agreement is reached,” Freddy insisted.

According to Kadin’s Natsir Mansyur, the inspection tariff might differ from region to region.

“[This is] because there are differences in the cost structures across regions,” Natsir told journalists after the meeting.

Separately, Ibrahim Sahib, executive director of PT Ghita Avia Trans, which was recently appointed as one of the six cargo inspection agents, said that the target of Rp 100 was almost impossible.

He said that his company would participate in the team to ensure a realistic inspection price was reached.

“Our principle is clear, if we cannot bear the running costs of the company, we will not be able to continue for much longer,” Ibrahim said.

Even at the current Rp 430 tariff, his company has already faced difficulties in covering the costs.

The Transportation Ministry said that the establishment of the team would not delay the implementation of the regulation, which went into effect last Saturday. (The Jakarta Post)

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