News

Indonesia must review its air cargo

September 7, 2011

Indonesia must review its air cargo regulations in order to support local businesses struggling with add-on costs through lengthy security checks and high inspection charges, say the country's major business associations.

A new system at Soekarno-Hatta International Airport in Jakarta was re-tested in July following a courier strike creating backlogs. The new system requires scanning of individual packages rather than bulk with X-ray machines by regulated agents for cargo inspections instead of warehouse operators.

The inspection charges have risen from the airport operator rate of IDR60 (about US$0.1) per kilogramme to IDR600 and IDR850 per kilogramme. The newly appointed regulated agents number three of PT Ghita Avia Trans, PT Duta Angkasa Prima Kargo and PT Fajar Anugrah Semesta.

State airport operator PT Angkasa Pura II will perform a temporary regulating stint of three months and charge IDR250 per kilogramme.

"The tariff increase should be in line with inflation," said Indonesian Express Delivery Companies Association (Asperindo) H Syarifuddin, reported the Jakarta Globe.

With delays expected, delivery agents will be crying out for more regulated agents for to handle freight volume of 900 tonnes a day, while the country needs to have at least 100 agents alongside its total 520 couriers, said the Indonesian Chamber of Commerce and Industry (Kadin), according to the Shipping Gazette.

Transport Weekly 

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