Indonesian Political, Business & Finance News

BYD Responds After Customs Chief Flags Container Buildup at Tanjung Priok

| Source: CNBC Translated from Indonesian | Business
BYD Responds After Customs Chief Flags Container Buildup at Tanjung Priok
Image: CNBC

PT BYD Motor Indonesia has responded to allegations regarding a buildup of containers at Tanjung Priok Port that implicated the company. BYD claims that after a comprehensive check, the number of its containers accounts for only a small portion of the total volume that has drawn attention. The influx of vehicles and spare parts from China has surged recently alongside the growing presence of Chinese brands in Indonesia.

Head of Marketing PR and Government Relations at PT BYD Motor Indonesia, Luther Panjaitan, apologised for any inconvenience caused by the situation. He explained that the congestion was not caused by a single factor, citing several operational and logistical aspects that slowed the distribution flow of goods from the port. These include high volumes of goods arriving simultaneously on a regular weekly basis, a number of national holidays, traffic congestion in distribution, and adjustments to logistics companies’ transport capacity due to fuel price increases.

Amid these conditions, BYD claims it has continuously coordinated with various parties to expedite the distribution process and reduce container density in the port area. The company has also increased its logistics fleet capacity to accelerate the removal of goods from the port zone, resulting in the successful relocation of most of the previously held containers.

Luther Panjaitan stressed that the company has no interest in deliberately holding containers at the port for extended periods. He noted that the storage costs and daily penalties incurred at the port are significantly higher than the costs of using either their own or temporary storage facilities outside the port. BYD is now closely monitoring the transfer process and expects all remaining containers to be cleared from the port shortly. He also clarified that the containers in question do not contain fully built vehicles, but rather components for the assembly process.

Earlier, Director General of Customs and Excise Djaka Budhi Utama revealed that approximately 10,000 containers were being held at Tanjung Priok Port. Speaking at a parliamentary hearing, Djaka stated that some companies were leaving their goods at the port for extended periods because the costs were cheaper than storage outside. He specifically named major Chinese automotive firms BYD and Wuling as examples, claiming they were exploiting a three-day port facility allowance after the issuance of the goods release permit (SPPB), with some containers remaining uncollected for more than two weeks.

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