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Jakarta Post

Your letters: Cutting dwelling time

Port business: Containers arranged at the Jakarta International Container Terminal (JICT), Tanjung Priok seaport in North Jakarta

The Jakarta Post
Thu, July 9, 2015 Published on Jul. 9, 2015 Published on 2015-07-09T06:35:53+07:00

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Port business: Containers arranged at the Jakarta International Container Terminal (JICT), Tanjung Priok seaport in North Jakarta. The government has said that it will cut the customs clearance process to make export-import activities more efficient.(JP) Port business: Containers arranged at the Jakarta International Container Terminal (JICT), Tanjung Priok seaport in North Jakarta. The government has said that it will cut the customs clearance process to make export-import activities more efficient.(JP) (JICT), Tanjung Priok seaport in North Jakarta. The government has said that it will cut the customs clearance process to make export-import activities more efficient.(JP)

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span class="caption">Port business: Containers arranged at the Jakarta International Container Terminal (JICT), Tanjung Priok seaport in North Jakarta. The government has said that it will cut the customs clearance process to make export-import activities more efficient.(JP)

The two letters below refer to an article titled '€œGovernment tightens grip on imports to cut dwelling time,'€ (The Jakarta Post, July 7, p14).

President Joko '€œJokowi'€ Widodo, accompanied by government officials, carried out an inspection of Tanjung Priok port in North Jakarta recently. During the inspection he looked uncomfortable about the messy management of the port. The major point that he stressed was his disappointment in the lengthy processing time of port services.

He looked upset knowing that the process took 5.5 days, longer than the 4.7 day government target. This lengthy process produces Indonesia'€™s high cost economy in logistics, which costs more than Rp 700 billion (US$52.40million) per annum.

The President'€™s outrage is understandable and should encourage all parties to improve their performance ahead of the ASEAN Economic Community.

The day after the inspection, several ministers dealing with trade, transportation and maritime affairs had a meeting at the port to discuss speeding up the process of services.

One of the problems, according to Trade Minister Rachmat Gobel, is that many importers have not equipped their goods with proper documentation, so that they could not immediately be processed. It means that goods will stay at ports longer than expected.

The following is part of the process in the ports. First is pre-customs, which requires 3.6 days. Here, the importers must have the proper documents issued by institutions like plant quarantine, fish quarantine, the health ministry, etc. There are approximately 18 government institutions.

Second is customs clearance. At this stage, the imported goods should be declared to customs officers. The importers have to complete all related documents and pay import duty and taxes before the goods can be sent out from the port.

To short-cut the process, there is an idea from the port authority to freeze the customs authority, similar to what prevailed during the then Soeharto government late of 1980s.

 Ruli Alqodri Mustafa
 Cilegon, Banten


Whether it'€™s just another addition to refine the rules to improve efficiencies or if it will actually be a concrete step in progress remains to be seen. However, it is a positive sign of wanting change for improvement.

To support its execution, the government should instruct all shipping companies, agents and importing parties to not ship any cargo into the country unless all requirements regarding licenses and permits are in order and that such parties be held responsible and be penalized if cargo lacking documentation is off-loaded at any incoming ports.

And to ensure there are no intentional delays, there should be an office made available for any party to report undue delays if all permits or licenses are in fact in order and the responsible parties within the port should be held liable for losses arising from such delays.

Any reporting party of such undue delays should be assured they will not be harassed by any party within the port.

Such practical arrangements are needed to support and give credence to any new additions to the existing rules and laws put in place to improve port efficiency. Any country can progress if the government is committed to good governance.

LB Saw
Tangerang, Banten

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