Aiming to boost competitiveness and preparedness for liberalisation of the Indonesian logistics sector, at least 10 domestic associations have asked the government to create special logistics law. The associations said the sector hasnot been properly regulated.
Chairman of Indonesian Air Cargo Agents (ICAC) Mufti Syafei said in the associations’ meeting in August all expressed the need to have specifi c law that will assure the growth of this sector. Rapid growth and an influx of foreign fi rms has highlighted the fact“there is no clear rule of the game,”according to the industry players. Inrecent meeting the associations’ representativesoutlined to offi cials of theTrade Department how they felt theindustry should be regulated.
“The problem is that since there are so many associations, it takes time to come up with a common perception,” Syafei said. The associations include Indonesian Forwarder Association (INFA), Association of Express Delivery Companies Association (Asperindo), Indonesian Stevedoring Association, Indonesian Logistics Association, Indonesian Air Carriers Association (Inaca), Indonesia Air Cargo Agents Club (ICAC) and Air Cargo Representative Board (ACRB). Although the government seems unclear as to how to manage the sector, it has promised to protect local players by giving tax incentives and other assistance that will boost their competitive level before the logistics sector is liberalised in Asean by 2015.
The trade ministry’s Firman M. Tamboen asked the associations to prepare technical matters on how the industry should be protected and how many years they need protection. Based on Asean Senior Economic Officials Meeting, there are 44 fi elds that will be liberalised according to a roadmap of integratedlogistics service in Asean by 2015.
“The associations must discuss the 44 segments and give a clearer view to enable the government to decide on the case,” he added.
The Indonesian Logistics Association revealed that based on logistics cost, Indonesia is the most ineffi cient country, spending 20-30 per cent on logistics, compared to Japan (5.0 per cent), US (9.4 per cent), and South Korea (12.5 per cent).
– Siktus Harson
