Local forwarders want new government regulation
Local forwarders want new government regulation
Sari P. Setiogi, The Jakarta Post, Jakarta
Indonesian forwarding companies are urging the government to
issue a new regulation aimed at improving forwarding services in
the country.
"A new regulation is badly needed as some local forwarding
companies are unreliable and do not meet international
standards," Indonesian Forwarders Association (INFA) chairman
Chris Kanter told the media on Wednesday.
The association submitted a draft regulation late last year to
the State Secretariat but received no response, he said.
"Competition in the business is getting tight, particularly
with the operation of international companies. With poor
services, it will be hard for local companies to compete against
them," he explained.
Chris said that a decline in business for domestic freight
forwarders was already evident this early in the year, compared
to business in past years. He did not mention by how much
business had decreased.
"The prevailing regulation on the business is only a
ministerial decree, which is very loose in regard to both local
and international companies," he said.
He explained that the ease with which a freight forwarding
company could be established had more bad consequences than good.
"Many local companies do not try to obtain a forwarder's
certificate from INFA or the International Federation of Freight
Forwarders Association (FIATA), which would guarantee that they
meet business qualifications," Chris said.
With the absence of such certification, many local forwarding
companies are unaware of the basic regulations and ethics on the
industry. In turn, the companies are prone to make mistakes that
affect customers and causes them to lose faith in the local
industry.
"That has a bad impact on the industry.
"In the meantime, foreign companies enter the Indonesian
market very easily. We need more reliable local players in the
business, otherwise customers will favor international forwarding
companies more than domestic ones," he said.
Chris said that faith that freight would be delivered safely
and on time was the most important consideration for customers.
"Pricing is the second consideration. Customers are willing to
pay more as long as they feel secure that their freight will be
delivered safely and on time."
According to INFA secretary-general Nararya S. Soeprapto, the
association has about 2,600 members, of which about 20 are
foreign joint ventures.