Importer claims red tape remains at Priok port

JAKARTA (JP): Despite the government's effort to boost non-oil exports by reducing import duties, an influential importer lamented yesterday that importers still face red tape and hostile bureaucracy at Tanjung Priok port here.

Chairman of the Importers Association of Indonesia (Ginsi) Amirudin Saud told The Jakarta Post that the latest deregulatory measures did nothing to cut handling costs at Indonesia's most important sea port.

An importer nowadays must pay various "irregular" fees, including the so-called container relocation fees, "although the management of the port never even removed the container," Amirudin said.

He said that Tanjung Priok port regulations should be revised because they contradict Presidential Instruction No. 3/1991 on exports and imports.

Referring to the decree, he said that a container could be stored at the port free of charge for up to 10 days.

The management at Tanjung Priok, however, reduce the 10-day limit to five days, after which time they impose sanctions on the owner of an overstayed container.

Amirudin said owners of such containers must pay movement fees ranging from Rp 32,500 (US$15) to Rp 97,500 per container.

"Imagine the amount of the fees if an importer manages hundreds of containers in a month," he said, adding that there are also relocation fees, boarding cancellation fees, sling fees and others.

He said that Ginsi, established in 1956, currently has 2,931 members throughout the country.

Hail

Meanwhile, Amirudin, hailed the government's latest deregulatory measures, which are in line with Ginsi's proposal filed with the government on May 31.

"The government has apparently agreed to Ginsi's request to remove the check prices on imports of certain products, like polypropylene, caustic soda, formic acid and cement wrapper," he said, adding that such a measure will slash production costs.

The deregulatory measures, announced on June 27, reduced import duties on 739 types of goods, removed non-tariff barriers from 27 commodities and lifted surcharges from 108 other imported items.

Amirudin said removing check prices has slashed costs for imports because they were set far higher than the real prices.

The check price of caustic soda, for example, was set at $471 per ton, while its market price in Europe and the United States fell between $135 and $140, he said. (09)