TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt told to revise air cargo regulation

Business associations are urging the government to revise a regulation on a new air freight security management system, which was implemented on Saturday

Linda Yulisman (The Jakarta Post)
Jakarta
Mon, September 5, 2011

Share This Article

Change Size

Govt told to revise air cargo regulation

B

usiness associations are urging the government to revise a regulation on a new air freight security management system, which was implemented on Saturday.

Indonesian Chamber of Commerce and Industry (Kadin) vice chairman for trade, distribution and logistics Natsir Mansyur said on Sunday that the government needed to revise several essential points — including security charges, cargo inspection procedures and regulated agents.

“The revision is necessary to ensure that local businesses are not negatively impacted by the implementation,” he told The Jakarta Post over the phone.

He said that additional costs such as security checks would increase logistical costs for local products, which in turn would burden manufacturers and reduce the competitiveness of their products overseas.

As stipulated in a recently issued air transportation director general’s regulation, the government is introducing a new system for cargo inspection at major airports, which includes scanning single packages with X-ray machines by regulated agents for cargo inspections instead of warehouse operators.

During a trial on July 4 and 5 at the Soekarno-Hatta International Airport in Jakarta, the new system did not work properly and caused a cargo traffic delay.

The involvement of three newly-appointed regulated agents — PT Ghita Avia Trans, PT Duta Angkasa Prima Kargo and PT Fajar Anugrah Semesta — also increased inspection costs to between Rp 600 (7 US cents) and Rp 850 per kilogram from Rp 65 per kilogram.

Transportation Ministry air transportation director general Herry Bakti Gumay was not available to elaborate on the details of the new system.

Sudaryanto, senior manager of state airport operator PT Angkasa Pura II’s Soekarno-Hatta airport, said in a written statement that was issued on Saturday that his firm has been appointed as a temporary regulating agent for three months while establishing a new legal entity to be the regulated agent to comply with the regulation. The firm charges Rp 250 per kilogram for cargo inspections.

Indonesian Express Delivery Companies’ Association chairman M. Kadrial told the Post that cargo inspection procedures should be improved to allow more efficient implementation of the regulation.

“The new system makes cargo undergo longer inspection processes, with cargo going to regulated agents first and then to the courier companies and later to the airports,” he said, comparing it with the previous system in which cargo went directly to courier companies and then the airport.

Kadin estimated that to check a total freight volume of 900 tons a day for domestic and international destinations, Indonesia would ideally need around 100 regulated agents — 20 percent of its total 520 couriers.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.