Indonesian Political, Business & Finance News

Forwarding body denies alleged wrongdoings

Forwarding body denies alleged wrongdoings

JAKARTA (JP): The Indonesian Forwarders Association (INFA) yesterday denied allegations that its members were impeding the flow of air cargo imports.

The association's secretary general, Santoso Soeparman, told journalists at his office yesterday that those who usually hinder the clearance of goods through airports' customs areas are individuals who provide forwarding services.

"They cannot be categorized as freight forwarders because they are not affiliated to any freight forwarding companies. Some of them might operate as customs service scalpers," Santoso said.

He made the remarks in response to allegations by Director General of Customs and Excise Soehardjo Soebardi that freight forwarding companies often act more like customs service scalpers rather than customs brokers.

Soehardjo said forwarders often exploit small-scale importers or travelers who carry goods which have to be declared to customs officials. They charge extra money for what they describe as services to deal with customs officials.

"We regret the customs director general's remark because it could damage the image of freight forwarding companies in general," Santoso said.

He added that such a bad image of local forwarding firms could make users of their services turn to foreign firms, which in turn would widen the country's deficit in services.

Members

INFA groups some 1,350 freight forwarding firms, including 42 firms operating in Jakarta's Sukarno-Hatta Airport and some 600 firms in Tanjung Priok Port.

Some 200 other forwarding companies in the city, however, are not registered as INFA members.

Santoso noted that what was hinted by Soehardjo as customs service scalpers may be those individuals who are not affiliated with INFA's member forwarding firms, or individuals who provide assistance in processing customs documents.

"I don't say that there are no recalcitrant INFA members. If anyone of our members is found to work as customs service scalpers, just report to us. We will take disciplinary actions against such errant members," Santoso said.

He noted that INFA had signed a memorandum of understanding with the customs directorate general to improve the image of both the customs office and freight forwarding firms.

Santoso said INFA had often raised the issue of customs service providers, whose existence was guaranteed by Presidential Decree No. 3/1991.

"However, up to now there have not been any detailed provisions as to who are allowed to give customs services," Santoso said.

"We have asked the customs office to regulate those acting as intermediaries in dealing with customs clearance, but up to now it has not taken any measures."

He said INFA had also proposed to the customs office the possibility of requiring freight forwarding companies to give bank guarantees for their operations.

Soehardjo said earlier that his office had no direct control over freight forwarding firms and other customs service providers because it has no licensing power over them.

Freight forwarding companies obtain operation licenses from the Ministry of Transportation. (rid)

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