Jakarta (ANTARA) \u2013 Transport Minister Dudy Purwagandhi said the\ngovernment was studying minimum tariffs for land-based logistics\nservices to support the sustainable operation of logistics companies and\nprevent price wars that could compromise safety.<\/p>\n
Dudy said safety was the principal consideration in setting a minimum\ntariff, as the rules would ensure companies could afford vehicle\noperating costs.<\/p>\n
\u201cSafety considerations are the basis for our decision to set or\nimplement a minimum tariff for land transport. The approach is centred\non safety,\u201d the minister told journalists in Jakarta on Friday.<\/p>\n
He said the proposed minimum tariff was intended to stop freight\ncompanies from cutting service prices so drastically that they neglected\nvehicle maintenance, including replacing essential components such as\ntyres.<\/p>\n
He said unchecked price competition could encourage risky transport\npractices, as companies sought to reduce operating costs without taking\nsafety standards into account when distributing goods across\nIndonesia.<\/p>\n
The tariff would be calculated to cover various operating needs,\nincluding vehicle maintenance, insurance, staffing and other expenses,\nso that freight businesses could operate sustainably while meeting\nsafety requirements.<\/p>\n
According to Dudy, the minimum tariff was not intended to regulate\nexcessive profits, but to establish a floor so that businesses would not\nsacrifice safety in order to offer cheap freight rates in different\nparts of Indonesia.<\/p>\n
Dudy illustrated competition in land logistics with the example of a\ngoods owner seeking a carrier to transport one million tonnes of\ncargo.<\/p>\n
Without a minimum tariff, companies could keep undercutting one\nanother. For example, a goods owner might offer a logistics operator Rp1\nmillion to carry 20 tonnes, only for a second company to offer the\nservice for Rp500,000.<\/p>\n
\u201cOverloading and over-dimensioning (ODOL) happen because there is no\nregulation on the price per kilogramme, per kilometre and so on. There\nis a lot of cargo, and land transport is somewhat complicated,\u201d he\nsaid.<\/p>\n
The minister said the government would also consult other sectors\nthrough focus group discussions before formulating a minimum tariff\npolicy for land freight, which would then be decided by the\ngovernment.<\/p>\n
A minimum tariff could ensure that freight companies could not cite\nfinancial constraints as a reason for failing to meet their vehicle\nsafety obligations, helping create a healthy and sustainable business\nenvironment.<\/p>\n
Dudy said the proposal still required a study by the Transport\nMinistry\u2019s Transport Policy Agency (BKT), as well as discussions with\nrelevant ministries and agencies.<\/p>\n
\u201cThe BKT is studying it. Then we will talk with other sectors. We\nalso need to hold focus group discussions,\u201d he said.<\/p>\n
In addition to land transport, Dudy is preparing minimum tariffs for\nferry and shipping services to safeguard safety in the maritime\ntransport sector.<\/p>\n
He said oversight of maritime transport tariffs was considered\nrelatively easier because services had journey-recording systems and\nclearer ticketing mechanisms than land transport in the national\nlogistics system.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/transport-minister-studies-minimum-tariffs-for-land-logistics-to-improve-safety-1791568312", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }