The Indonesian government should enforce a limit on sea port fees charged by service providers to help reduce the high cost that traders, in particular importers, have had to bear for far too long, a discussion heard this week, the Jakarta Post reported.
The seminar, organized by Senada the USAID-backed non-profit agency, revealed that service firms operating in the Tanjung Priok port in Jakarta for example, including forwarding and stevedoring providers as well as storage operators, had allegedly colluded to fix prices.
This alleged pricing ring had undermined an agreement on the guidelines for service charges on imported goods for the less-than-container-load (LCL) category of shipments, resulting in high costs for importers using services at the port's line two, said Exporter-Importer Association chairwoman Amalia Achyar.
Amalia said that based on her study, more than US$121 million could be saved annually from the amount now spent on port services used by companies in Jakarta, West Java and Banten alone if the agreement could be properly implemented and efficiency maintained.
The agreement was made in 2007 following negotiations among service providers and users, including a forwarder association and exporter and importer associations.
Sharing Amalia's sentiments, Bonded Zone Employers Association secretary Ade Sudrajat said the high costs had been a burden on importers, which had low bargaining power in relation to service providers, as overseas exporters had usually already chosen a service provider for their shipments.
Taufik Achmad, a Business Competition Supervisory Commission (KPPU) member, said government intervention was necessary to help enforce the pricing agreement and to guarantee there would be no abuse of power by service providers.
In response however, Transportation Ministry director general of sea transportation Sunaryo said the government would permit agreed charges to service providers and users, as stipulated under the 2008 Law on Sea Transportation.
The seminar, organized by Senada the USAID-backed non-profit agency, revealed that service firms operating in the Tanjung Priok port in Jakarta for example, including forwarding and stevedoring providers as well as storage operators, had allegedly colluded to fix prices.
This alleged pricing ring had undermined an agreement on the guidelines for service charges on imported goods for the less-than-container-load (LCL) category of shipments, resulting in high costs for importers using services at the port's line two, said Exporter-Importer Association chairwoman Amalia Achyar.
Amalia said that based on her study, more than US$121 million could be saved annually from the amount now spent on port services used by companies in Jakarta, West Java and Banten alone if the agreement could be properly implemented and efficiency maintained.
The agreement was made in 2007 following negotiations among service providers and users, including a forwarder association and exporter and importer associations.
Sharing Amalia's sentiments, Bonded Zone Employers Association secretary Ade Sudrajat said the high costs had been a burden on importers, which had low bargaining power in relation to service providers, as overseas exporters had usually already chosen a service provider for their shipments.
Taufik Achmad, a Business Competition Supervisory Commission (KPPU) member, said government intervention was necessary to help enforce the pricing agreement and to guarantee there would be no abuse of power by service providers.
In response however, Transportation Ministry director general of sea transportation Sunaryo said the government would permit agreed charges to service providers and users, as stipulated under the 2008 Law on Sea Transportation.