Express service firms sees 30% growth in domestic delivery
Express service firms sees 30% growth in domestic delivery
Zakki P. Hakim, The Jakarta Post, Jakarta
Express services firms have expect more healthy growth in the
delivery industry this year if government authorities support a
recent policy by the Ministry of Transportation in easing the
maximum weight limit of packages that can be handled by a firm.
Indonesian Express Delivery Companies' Association (Asperindo)
chairman Johari Zein said domestic delivery growth may double to
30 percent this year, if the new policy were implemented properly
by bureaucrats on the ground.
"Last year, the domestic deliveries expanded by 15 percent to
reach a value of Rp 2 trillion (US$210.52 million) in 2004. The
policy is expected to make the industry grow another 30 percent
this year," he told The Jakarta Post on Wednesday.
However, he could not predict the growth for international
delivery, as last year -- due to political turbulence and lack of
investment -- express services to international destinations was
relatively stagnant.
"We hope that with the improving economic stability in the
country, express services to international destinations would
grow significantly this year," he said.
In late January, the transportation ministry issued a
Ministerial Decree No.5/2005 on express delivery services ruling
that firms may handle packages of up to 30,000 kilograms for a
single delivery.
According to Johari, the main factors that may hamper the
optimum implementation of the decree was that institutions like
customs and the directorate general for post and
telecommunications were under different ministries.
The customs office is under the Ministry of Finance, while the
directorate general is under the Ministry of Communications and
Information, thus the Ministry of Transportation needs to educate
the bureaucrats and ensure inter-ministerial coordination, Johari
urged.
"We simply hope that other government institutions can fully
support the Ministry of Transportation policy," he said.
Data from Asperindo shows that in practice, express services
firms could only handle packages of a maximum of 100 kilograms or
worth $5,000 per one international delivery.
The limitation varied in domestic delivery regulations but
mostly were even lower compared to the requirements for
international delivery, the association said.
"Easing the limitation would eventually accelerate the
production process and boost competitiveness, which the country
needed to pursue higher economic growth," Johari said.