Confusion reigns in debate on new THC rate

Rendi A. Witular and Anissa S. Febrina, The Jakarta Post, Jakarta

The government seems at a loss of how to deal with foreign shipping lines reluctant to lower the terminal handling charge (THC) to the new official rate, with different ministries coming up with different responses.

Minister of Transportation Hatta Rajasa said on Wednesday that those refusing to implement the new THC tariff were violating a government regulation and were thus subject to legal consequences.

The government lowered on Nov. 1 the THC from US$150 to $95 per 20-foot container and from $230 to $145 for per 40-foot container.

Shipping lines, especially representatives of foreign ones, have sent letters to customers -- importers and exporters -- advising that they would still impose the old tariff as the new one was still under discussion with the government.

Shipping company Maersk Sealand, for example, stated in its public announcement that the tariff revision would only be applicable if it had agreed to it.

"THC is a commercial tariff ... part of what Maersk Sealand sells to its customers both in Indonesia and abroad, which is decided upon in contract negotiation," it said in the letter.

It also stated it would respond positively to the decrease in tariff if cost components -- including illegal fees and losses because of inefficiency and heavy congestion at ports -- that currently burden the company could be lowered as well.

"For the time being, there will be no change in THC tariff charged by Maersk Sealand for Indonesia."

The statement contradicts remarks by Minister Hatta, who said that all parties, including foreign shipping firms, had agreed to the new tariff.

"There should be no reason for not implementing the new tariff," Hatta said.

However, Hatta fell short of giving details on what sanctions could be imposed on violators.

It was previously decided at a meeting between shippers, the shipowners association and the ministry that revocation of licenses would be an option.

Meanwhile, when asked about what action could be taken against those refusing to comply with the regulation, Coordinating Minister for the Economy Aburizal Bakrie said: "In the surcharge, shipping lines insert many unclear incentive fees. That could be categorized as corruption," he said.

He did not elaborate.