Indonesian Forwarders Association (INFA) has reported that many of its members in DKI Jakarta province have closed their business because of their inability to compete with multinationalforwarders operating in the city.

As a result, the number of active forwarders has dropped from 1,400 in2005 to only 780 forwarders.

The chairman of INFA for Jakarta chapter, Syukri Siregar said at the association’s recent workshop that local forwarders have lost their grip as a result of global forwarders taking over customs clearance business, which is the core business of manylocal forwarders.

“If all activities are taken over by multinational companies, local forwarders will cease operations. This development is indeed jeopardising the domestic logistics industry,” Siregar said, adding that the association regretted the government’s ignoranceof the matter.

INFA has suggested to the government to increase the guarantee from Rp150 million to Rp2 billion for multinational forwarders that are offering customs clearance. – Siktus Harson