ISAA Ready to Help Govt to Supervise Foreign Shipping Representatives

Indonesian Shipping Agencies’ Association (ISAA) is ready to help government to supervise foreign shipping representatives in Indonesia. ISAA states it in responding the complaints from shippers and consignees (forwarders) saying that they (foreign shipping representatives) have taken additional charge during the incident of CEISA (Customs-Excise Information System and Automation) disruption.

Even, to facilitate and simplify control over their operation in Indonesia, ISAA Chairman Juswandi Kristanto suggests all foreign shipping representatives in Indonesia should have SIUPKK (shipping agencies permit) issued by the Ministry of Transportation.

As the reports have said, in the midst of problems faced by logistics players of export import due to slower cargo delivery as a result of CEISA disruption, a number of foreign shipping through their representatives in Indonesia took some additional charges for import activities.

The business process for export-import services has experienced obstacles in the past week due to CEISA disruption.

Juswandi affirmed that there are a lot of shipping representatives or foreign shipping agencies in Indonesia, the ones of container shipping in particular, do not have SIUPAL yet. Their permits are attached to the foreign shipping companies themselves. Since they do not have SIUPKK, they must be re-verified for their existence as a shipping agency in Indonesia.

“They are all be agents for their owned business in Indonesia, especially the ones of container shipping transporting export-import containers to and from this country,” said Juswandi, named some of them Maersk Indonesia and CMA-CGM Indonesia. Even, some foreign shipping companies also have their owned freight forwarding business, added Juswandi.

Juswandi amended the fact that the way of foreign shipping companies doing business has significantly contributed to the logistics high cost in this country. Therefore, all cost components that arise from the service of foreign ships through their representatives/agencies in Indonesia, should be monitored.

Juswandi ensured that ISAA members would not do things that are against the regulations, including the regulation of Ministry of Transportation on shipping agency fees. However, Juswandi admitted that most of ISAA members are agents for foreign general cargo/breakbulk shipping companies. So, ISAA cannot supervise the ones of container shipping.

“What is certain is that those representatives or agents of foreign container shipping companies taking additional surcharges during the CEISA disruption are not members of ISAA,” he explained.

Juswandi noted that ISAA would soon send letter to Directorate General of Sea Transportation (Hubla) to explain it, thus giving no multiple interpretations.

“We actually want to settle a clear clarification. The association (ISAA) can play role to do coordination in supervising any companies holding government’s permit,” he said.

He revealed that ISAA commit to monitor and supervise of agents with SIUPKK to comply with the regulatory provisions properly and correctly. “ISAA hopes all shipping agencies non-SIUPKK can be monitored and supervised thus they do the business according to the rule and regulations,” said Juswandi.

Earlier, Indonesia Logistics and Forwarders’ Association Chapter Jakarta (ALFI DKI) received many complaints from its members regarding additional surcharges by a number of foreign shipping agents transporting import containers through their agencies in Indonesia.

According to ALFI DKI, to get the manifest number (BC.1.1) due to CEISA interference, the shipping agency charges a fee of IDR 200 thousand to IDR 300 thousand/shipment.

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