Pos Indonesia on tariffs increase

Pos Indonesia on tariffs increase

From Kompas

In response to letters sent to this newspaper (Aug. 2) by
several users of state-owned postal company PT Pos Indonesia
services, we would like first to thank you for your suggestions
and input and then to say that the increase in tariffs of postal
consignments abroad is also experienced by all others relying on
the services provided by PT Pos Indonesia in their correspondence
with overseas parties.

The present economic crisis has led to a higher cost of
production in the manufacturing and services sectors, a situation
PT Pos Indonesia cannot extricate itself from, particularly in
its overseas consignment services. The components of operational
costs in this respect, such as overseas handling of the packages,
handling at the airports of origin and destination and transit,
are calculated and paid in international currencies.

The weakening of rupiah against foreign currencies has
resulted in increases in the value of operational costs. Besides,
domestic handling of postal packages has also undergone a rise.
As a result, PT Pos Indonesia has to spend greater amounts of
money to cover operational costs incurred in domestic and
overseas consignment.

Despite this unfavorable condition, PT Pos Indonesia continues
to maintain low tariffs, especially with respect to general
letters, aerograms and postcards sent domestically and abroad
(sea mail). It should be understood, however, that sea mail takes
a relatively longer time than airmail.

So, the tariff increases, which became effective as from July
1, 1998, are intended solely to cover operational costs through
air transportation and to ensure that service users will continue
to enjoy speedy and reliable services. If the weight categories
and countries of destination are considered on average, the real
tariff increase is only 629 percent.

Meanwhile, the report in this newspaper of July 9, 1998,
Overseas postal tariff up by 90 percent, is correct. This report
is concerned with the Express Mail Service (EMS), a service
provided for the dispatch of documents and merchandise abroad.
The EMS tariff has undergone only a small increase because it is
intended to facilitate the flow of export goods.

However, in view of the economic difficulty now being
confronted, and with a view to maintaining the public trust, PT
Pos Indonesia can always revise the tariffs in the future.

HAKIM ROESAMSI

Public Relations Manager

PT Pos Indonesia

Jakarta