Entrepreneurs Complain about Listing Fee
Monday, 14 January, 2008 | 16:19 WIB
TEMPO Interactive, Jakarta: Several groups that are members of the Nine Associations Alliance are complaining about the government's attitude as regards the legalization of a listing fee or administration fee for registering goods.
The fee was included in article 8 point 4g of Presidential Regulation No.112 regarding the Zoning and Management of Traditional Markets, Shopping Centers and Modern Markets, issued on December 27, 2007.
The provision states that a listing fee is only allowed at a normal price.
However, the Alliance is questioning what the normal price is, including who can settle any disputes about this amount.
Members of the Alliance include the All-Indonesian Market Traders Association, the Modern Market Supplier Businesspeople Association, the Indonesian Food and Beverage Entrepreneurs Association, the Meat-Processing Industries Association, the Indonesian Cosmetics Companies Association, the Iodized Salt Consumption Producers Association, the Indonesian Electronics Union, the Indonesian Garment and Accessories Suppliers Association and the Soft Drinks Industry Association.
“The fee is really pressurizing suppliers as usually foreign retailers set the listing fee abruptly. This can weaken domestic industries much more,” said Putri
Kuswisnu, the Alliance's spokesperson, in Jakarta last weekend.
Now, she said, one foreign retailer obliges suppliers to pay a listing fee of between Rp3 million and Rp5 million per product per outlet.
This can amount to 40 percent of the total costs to be spent by producers.
This means that suppliers have to spend tens of billion of Rupiah in funds to list goods in national retail networks.
“This is despite the fact that this fee doesn't provide any additional value,” said Putri.
According to her, the Alliance has suggested that the listing fee be Rp150,000 to Rp200,000 at the maximum.
It has already conveyed this suggestion to the Indonesian Retail Entrepreneurs Association.
Retail groups believe that it is impossible to explicitly state the amount of the listing fee.
This is because the amount can change from time to time and with both parties' agreement - between the retailer and the supplier.
“Not all retailers use a listing fee,” said Tutum Rahanta, Secretary General of the Indonesian Retail Entrepreneurs Association.
RR ARIYANI
TEMPO Interactive, Jakarta: Several groups that are members of the Nine Associations Alliance are complaining about the government's attitude as regards the legalization of a listing fee or administration fee for registering goods.
The fee was included in article 8 point 4g of Presidential Regulation No.112 regarding the Zoning and Management of Traditional Markets, Shopping Centers and Modern Markets, issued on December 27, 2007.
The provision states that a listing fee is only allowed at a normal price.
However, the Alliance is questioning what the normal price is, including who can settle any disputes about this amount.
Members of the Alliance include the All-Indonesian Market Traders Association, the Modern Market Supplier Businesspeople Association, the Indonesian Food and Beverage Entrepreneurs Association, the Meat-Processing Industries Association, the Indonesian Cosmetics Companies Association, the Iodized Salt Consumption Producers Association, the Indonesian Electronics Union, the Indonesian Garment and Accessories Suppliers Association and the Soft Drinks Industry Association.
“The fee is really pressurizing suppliers as usually foreign retailers set the listing fee abruptly. This can weaken domestic industries much more,” said Putri
Kuswisnu, the Alliance's spokesperson, in Jakarta last weekend.
Now, she said, one foreign retailer obliges suppliers to pay a listing fee of between Rp3 million and Rp5 million per product per outlet.
This can amount to 40 percent of the total costs to be spent by producers.
This means that suppliers have to spend tens of billion of Rupiah in funds to list goods in national retail networks.
“This is despite the fact that this fee doesn't provide any additional value,” said Putri.
According to her, the Alliance has suggested that the listing fee be Rp150,000 to Rp200,000 at the maximum.
It has already conveyed this suggestion to the Indonesian Retail Entrepreneurs Association.
Retail groups believe that it is impossible to explicitly state the amount of the listing fee.
This is because the amount can change from time to time and with both parties' agreement - between the retailer and the supplier.
“Not all retailers use a listing fee,” said Tutum Rahanta, Secretary General of the Indonesian Retail Entrepreneurs Association.
RR ARIYANI