The existence of shipping agents in Indonesia has been a corridor talk among shipping communities within the country. Weather a ship agent should hold a shipping permit SIUPAL has been debated for a long time. The government then issued regulation of shipping agent permit SIUPKK, in which shipping agents can be acted by a company holding SIUPKK.
“Referring to this regulation and to the best business practice in the world, no need for a shipping agent to owned vessel,” Chairman of Indonesia Shipping Agencies Association (ISAA) Reinhard LB Tobing has noted.
Talking as a speaker for a recent conference of SEA INDONESIA on Wednesday, May 17, 2023, Reinhard explained that shipping agent or agency is the term used to refer to the appointed companies that handle operational and procedural (legal) requirements for a commercial vessel‘s call at a port for the purposes of cargo handling (loading/discharging), emergency calls, repairs, crew changes, or ship demolition, and protect the general interests of their principals on behalf of ship owners, disponent owners, or charterers in an objective manner.
“In short, the role of the ship agent needs to protect its principal interests,” said Reinhard.
On that occasion, Reinhard emphasized that the ship agency business does not need to own a ship in accordance with the current Indonesian Government regulations, namely PP 31/2020 and PM 59/2021 and several derivative regulations.
He analogized it as in air or railway transportation business. “Airline and train agencies do not have to own an airplane or a train, right? So that’s the philosophy that ship agents. No need to have owned ships either,” he said.
Reinhard also emphasized that shipping agencies members of the Indonesia Shipping Agencies Association (ISAA) are expected to be able to support government programs in streamlining national logistics.
In addition, shipping agency businesses should be able to take advantage of digitalization in their business activities and not have to worry about technological advancements that are currently developing.
“Shipping agencies don’t need to worry about digitalization and have to prepare a strategy so they can compete in the current technology 4.0 era,” said Reinhard.
He also emphasized that ship agency companies should not be afraid to openly compete with similar businesses. “We must be optimistic that we can move forward together,” he said.