Indonesian Political, Business & Finance News

Asperindo Calls for Cancellation of Jasper and SGHA Tariffs to Curb Logistics Costs

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Asperindo Calls for Cancellation of Jasper and SGHA Tariffs to Curb Logistics Costs
Image: MEDIA_INDONESIA

The Indonesian Express, Postal and Logistics Services Association (Asperindo) has urged the government to cancel the imposition of the Cargo and Postal Security Inspection Service (Jasper/Jaster) tariff of Rp700 per kilogram and the Cargo Handling Charge (SGHA) of Rp340 per kilogram on air cargo services. The policy is deemed to increase the national logistics cost burden and potentially reduce business competitiveness. Asperindo Chairman Budiyanto Darmastono stated that logistics businesses have long shouldered various cost components in the shipping process by air, both upon departure and arrival. The public needs to know that the costs paid for air freight are not limited to the airline’s cargo rate. Even before the introduction of Jasper and SGHA, logistics companies already bore various costs such as Regulated Agent (RA) fees, cargo warehousing, handling, document administration, Air Waybill fees, fuel surcharges, and various other operational costs. According to Asperindo’s analysis, the departure process already includes charges for security screening, cargo warehousing, handling, and document administration. Upon arrival at the destination airport, goods are again subject to warehousing, handling, and administration fees, meaning the total cost borne by businesses can reach over Rp5,000 to Rp7,500 per kilogram, excluding air transport rates. Asperindo views the addition of Jasper and SGHA tariffs as having the potential to create multiple charging in the air cargo service chain, which will ultimately be passed on to service users and the public. We support improvements to security and quality of air cargo services. However, such policies must be implemented transparently and proportionally, and must not impose double burdens on businesses or the public. Beyond facing new tariffs, the logistics industry is already burdened by increases in cargo warehousing tariffs, Air Waybill fees, transport costs, and rising energy prices, all of which directly raise national distribution costs. Asperindo warns that rising logistics costs will impact shipping service rates and affect various sectors, from SMEs, manufacturing, and trade to e-commerce. A larger impact is expected to be felt by communities in Eastern Indonesia, archipelagic regions, and frontier, outermost, and disadvantaged (3T) areas that still depend on air transport for goods distribution. As a solution, Asperindo proposed four steps to the government: temporarily cancelling the Jasper and SGHA tariffs until discussions are held with all stakeholders, evaluating the cost structure of air cargo terminals, auditing the potential for duplicate cost charges, and increasing transparency in air cargo business processes. The government is currently trying to lower national logistics costs to be more competitive compared to ASEAN countries. Therefore, what the business world needs is efficiency and cost simplification, not the addition of new cost burdens that will ultimately be borne by the public. We will continue to rally with other associations in the logistics sector to jointly voice opposition to this increase in logistics costs.

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