Indonesian Political, Business & Finance News

Transportation ministry scraps fees, cuts permits

Transportation ministry scraps fees, cuts permits

JAKARTA (JP): The ministry of transportation yesterday
abolished four major types of administration fee and reduced the
number of permits under its jurisdiction as part of the
government drive to cut the costs of doing business.

Minister of Transportation Haryanto Dhanutirto decided to
abolish four kinds of fees related to the testing of motor
vehicle prototypes.

Haryanto, in Decree No.10/1996 and Instruction No.003/1996
effective as of yesterday, also cut the number of permits related
to shipping and port services.

"We need to improve the efficiency of the economy as a whole
and of sea transport services in particular," he noted in the
ruling.

The decree abolished fees for the registration of basic motor
vehicles and for testing new series of automotive vehicle models
and carriages.

Fees related to the certification of civil aviation personnel,
aircraft and aircraft maintenance centers were also abolished.

Other fees abolished by the ruling include those related to
the administration of permits for river, lake and ferry and land
transportation, including licenses for operations, route,
sailing, special cargo service, advertisement and building.

Haryanto also instructed the director general of sea transport
to streamline or cut the licensing procedures for shipping and
port services.

"National shipping companies which intend to operate foreign
ships for domestic operations need only report the operation of
those ships to the directorate general," the instruction states.

Port administrators and harbor masters are obliged to serve
foreign ships which are operated by national shipping companies.

The instruction frees shipping firms operating tramping
services from the obligation to submit service route plans.

"Foreign ships which enter Indonesian waters need to produce
only the following documents: general and cargo declarations,
crew and passenger lists, dangerous cargo declarations, crew
effects declarations and narcotics declarations," the instruction
stipulates.

The ruling further states that imported and exported goods can
be loaded or unloaded at seaports open to international trade.
(vin)

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