DHL comments on Batam

DHL comments on Batam

I refer to the article in the April 19 edition of The Jakarta
Post titled Government to divide Batam into free trade enclaves.

The government should be lauded for taking this step in the
right direction. As the world's leading provider of express and
logistics solutions, we know from experience that such a move
brings tremendous long-term benefits in the form of greater
investment, improved competitiveness in export markets and, in
many cases, increased foreign exchange earnings from a buoyant
export industry.

However, while the implementation of free trade enclaves on
Batam is a positive step, it would be far more beneficial and
efficient for the whole of Batam to be designated a free trade
area. This would eliminate many administrative problems and
concerns for businesses already operating there as well as
potential investors.

Furthermore, we also believe a holistic view must be taken
in relation to creating a nationwide business environment that is
truly conducive to business. Some recent developments run
contrary to this.

For example, with effect from May 1, 2004, businesses will
have to bear additional costs in the form of charges for import
and other customs clearance. In addition to making it more
expensive for business, these charges are counterproductive, add
extra administration and make life more complicated for the
business community.

Another example is the current 3-in-1 policy which has further
aggravated the already severe traffic congestion in Jakarta. It
is ironic that although it only takes a little over one hour for
a shipment to arrive by air in Jakarta from Singapore, delivering
that same shipment to its final destination in the city could
take several hours because of the city's traffic congestion.

As a company with a core mission to support the free flow of
goods through express and logistics solutions, we hope policies
will be formulated that are both consistent and comprehensive.
This is imperative if the many benefits resulting from the free
trade zones are to be protected.

ALAN CASSELS

Senior Technical Adviser

PT Birotika Semesta/DHL Express

Jakarta