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ort service users have expressed their support for the plan to increase container handling charges (CHC) and terminal handling charges (THC) imposed on shipping companies at Tanjung Priok Port.

The Indonesian Shipping Users Association (Depalindo) chairman Toto Dirgantoro said that the association supported the plan of state-owned port operator PT Pelabuhan Indonesia II (Pelindo II), also known as the Indonesia Port Corporation (IPC), to raise the handling charges at the port.

'€œThe price adjustment for CHCs and THCs in Tanjung Priok Port should be supported, given the fact that they haven'€™t increased since 2008,'€ Toto said in a written statement made available for The Jakarta Post on Friday.

'€œThe tariff adjustments will inevitably encourage investment and will have a positive impact on the port'€™s service users,'€ he continued.

Pelindo II currently imposes a THC of US$95 for 20-foot containers, which comprises an $83 CHC and a $12 surcharge.

In May, the company asked the government for permission to increase the CHC to $93 per container but as yet no response has been received from the ministry.

Toto said the new charges should be fixed immediately to give the port operators certainty in conducting their business.

The director of the National Maritime Institute (Namarin) Siswanto Rusdi also said the increase in charges would not hurt the country'€™s logistics cost efficiency, since CHCs were only a small part of the total logistic costs.

He said the government and related associations should look at the logistics chain thoroughly and not just focus on the charges.

'€œReasonable tariff adjustments are required for port operators to be able to make further capital investments in order to increase the port'€™s capacity and efficiency,'€ Siswanto said.

'€œIn the long run this will lead to reduced logistics costs as well,'€ he continued.

Indonesian National Shipowners Association (INSA) chairwoman Carmelita Hartoto, however, said the government should not raise the charges as it could affect the country'€™s competitiveness.

The Indonesian Logistics Association (ALI) has voiced similar concerns, saying that Indonesia has the highest CHCs among ASEAN countries and they should not be raised ahead of the implementation of the ASEAN Economic Community (AEC) at the end of 2015.

According to the association the CHC in Malaysia was around $65, while in Thailand and Vietnam the charges amounted to around $70 and $50, respectively, said Zaldy.

Responding on the price-increase request, Transportation Minister EE Mangindaan recently said that the ministry would decide on the price adjustment before the end of this year.

'€œWithout an improved service, the CHC should not be increased. What'€™s important is improved service quality,'€ he told reporters.