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