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Indonesian business bodies slam Pelindo II surcharges at Tanjung Priok

Indonesian business bodies slam Pelindo II surcharges at Tanjung Priok
The Indonesian Chamber of Commerce and Industry (Kadin), together with several other business associations representing port service users, have called on state port operator Pelindo II to revoke penalty fees levied on firms that fail to clear their containers on time at Jakarta’s Tanjung Priok Port, local reports said.

New regulations, introduced in February require containers to be cleared on the day of arrival or be levied a demurrage charge eight times the normal daily rate.

Pelindo II executives, including acting president director Dede Martin, said the new rules are aimed at streamlining the flow of goods and reducing dwelling times at Tanjung Priok, but Indonesia's most influential business lobby group, Kadin, slammed the regulation, saying that the imposition of higher fees had no immediate correlation to reducing dwelling times and ran counter to the government’s efforts to reduce logistics costs.

Instead, the government should conduct further deregulation to simplify import licenses, infrastructure improvements and better coordination with all relevant authorities, Kadin deputy chairman for logistics and supply chain management Rico Rustombi said.

“Reducing dwelling times can’t be done by increasing fees,” he reiterated. “This offends port users’ sense of fairness as logistics costs will remain high.”

Representatives from 15 other associations, including the Indonesian Employers Association (Apindo), the Association of Indonesian Automotive Manufacturers (Gaikindo) and the Indonesian Footwear Producers Association (Aprisindo) also joined in support of Kadin's position.

Kadin data shows that Indonesia’s terminal handling charges (THC) are already the second highest in Southeast Asia after Singapore, ranging from $95 per teu to $145 per feu, compared to Singapore’s charges of $155 and $235, respectively.

Cikarang Dry Port ceo Benny Woernardi, pointed out that about two-thirds of vessel arrivals are during the night and by the time unloading is completed actual containers go on the dock only early the next day. However, Pelindo II considers this the second day and imposes surcharges, compared to Malaysia and Singapore, which impose higher fees on the fourth day after a container’s arrival.