Govt threatens legal action against THC violators
The Jakarta Post, Jakarta
The government will soon report at least six foreign shipping firms to the Corruption Eradication Commission (KPK), for allegedly failing to comply with a new regulation to reduce terminal handling charges (THC) at ports.
Based upon data from the Indonesian Council of Transportation Servicers' Users (Depalindo), the six firms were found to have been charging traders the old fees, despite a new ruling -- which could mean that they have been taking "illegal fees", Minister of Transportation Hatta Radjasa said on Friday.
"According to the Depalindo data, there are six companies that have been requiring these illegal fees. So, for the time being, we'll report these six companies (to the KPK)," Hatta said.
He did not identify any of the six companies.
The Indonesian National Shipowners Association (INSA), in a report submitted to the ministry on Friday, said that only one of the 38 foreign shipping lines' local agents here had adjusted their THCs downward in compliance with the new ruling.
The government lowered on Nov. 1 the THC from US$150 to $95 per 20-foot container and from $230 to $145 for per 40-foot container. The announcement was made through a ministerial letter dated Oct. 28.
However, arguing that discussions were still underway with the government on the issue, most of the shipping lines have yet to comply with the new ruling.
In the port operation system, the THC covers the cost of loading-unloading activities and the movement of goods to the container area. The activities take place at the port and thus any charge imposed on them is under the authority of the government.
Such conditions allows the government to decide the container handling charges (CHCs) -- which is a part of the THC -- and the additional surcharges for problems that may occur during the loading or unloading process.
Currently, Indonesian traders are paying the THC at the price decided by an international conference of shipping lines -- $150 for a 20-foot container and $230 for a 40-foot container.
Hatta said that the main spirit of the move was to show that the government was serious in implementing regulations it had issued, which was aimed at reducing the burden on importers and exporters and eventually making Indonesian products more competitive in international markets.
INSA chairman Oentoro Surya meanwhile, suggested the government review the operating licenses of those shipping lines for refusing so far to apply the new fee.
At present, foreign shipping companies control about 96 percent of the shipments of products in and out of the country, which averages about 6 million 20-foot container equivalent units per year.