Supporting National Logistics Improvement, ALFI Ready to Run Multimodal Transportation

Photo: Syaifuddin Syahrudi

The Indonesia Multimodal Transportation System will be adopted and run nationwide as the logistics business players – Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) – is ready to run it throughout the country.

Chairman of ALFI/ILFA Chapter South and West Sulawesi Syaifuddin Syahrudi underlined that this system adoption will help to improve the Indonesia logistics performance.

“The JPT companies (freight forwarding companies) are ready to run this multimodal transportation system,” Syaifuddin said in a statement to Indonesia Shipping Gazette today, Sunday, July 26.

“Hopefully, this system will realize the expected effective, efficient, and competitive national logistics system,” he further said.

According to Syaifuddin, the JPT companies in South and West Sulawesi have been used to run this multimodal system since both the Seaport of Makassar and Hasanuddin International Airport have running transhipment activities for East and Central Indonesia.

“JPT (forwarders) in Sulselbar (South and West Sulawesi) have been used to multimodal system, both for export import and interisland cargo delivery,” Syaifuddin usually called Ipho said.

Anwar Satta, DPP ALFI/ILFA Vice Chairman for Organization Division affirmed it, saying ALFI has been ready to run the multimodal system nationwide. “This multimodal system will be adopted for nationwide scope soon. ALFI members have been ready for this system for a long time,” he said.

Anwar explained there are as many as 3,412 JPT companies (forwarders) members of ALFI nationwide. They all will be involved to make this multimodal system run.

291 Running Multimodal since 1990s

Of the total ALFI members, as many as 291 companies have actually been running multimodal service since 1990s as they have been classified as international freight forwarders.

Meanwhile, up to now, there are only 12 companies with special permit on multimodal transportation operator (MTO/BUAM), a half of them are ALFI members. “Adopting and running the multimodal transportation system at any regions and areas throughout the country will improve the national logistics and further encourage investment and export, we believe,” Anwar said.

He explained that ALFI has actually been running the multimodal transportation system since 1990s as the transportation has been equipped with single document system (DAB), – a document that has included Standard Trading Condition (STC) and liability insurance.

“Its digital information, communication and transaction system has also been ready,” he said.

Even, according to, the DAB issued by ALFI (formerly GAFEKSI) has been approved by Bank Indonesia as an accompanying document in disbursing local Letter of Credit (L/C) via national banks.

“So, interisland traders will be benefited. No need for them to do trading transaction in cash and carry scheme, but they can use local L/C. This system can help UMKM (small and medium scale business), especially during this pandemic covid-19 outbreak,” he said.

In view of this, Anwar understands why all JPT companies nationwide do not agree if they have to change their business permit with the special permit on multimodal transport operator (MTO/BUAM). The multimodal activities are part of freight forwarding businesses.

He the ones that should get new register are the companies that are now with unimodal (one mode of transportation) such as truck operator, shipping lines, or air lines.

Legal Aspects

Why are JPT companies reluctant to change their permit? In addition to legally weak, JPT permit is more benefiting in running business, compared to BUAM permit, according to General Treasurer of DPP ALFI Wisnu Pettalolo.

Wisnu explained that in line with the Regulation of Minister of Transportation (Permenhub) No. PM. 49/2017, JPT company’s activities cover 21 segments. “It can be understood why ALFI members prefer to use JPT permit,” he said.

According to the Permenhub, Wisnu explained further, the JPT activities range from receiving, stuffing, filing, measurement, tally, document clearance, space booking.

In addition, JPT also handles activities of delivery, distribution, cost calculation, claim, insurance, IT, logistics service, e-Commerce, and Non Vessel Operating Common Carrier (NVOCC) , and courier.

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