Logistics business players appreciate the massive steps taken by government bodies on eradicating the illegal fee taking (‘Pungli’) and thuggery as it will help logistics business safer, cheaper, and more competitive.
As media have reported, following a direct instruction of President Joko Widodo, in the last several days, the Indonesia police have been intensively doing operation to eradicate any illegal practices of taking illegal fees at some Indonesia container terminals and depos. Some have been arrested, both from container terminal and container depo.
Commending this issue, President Director Agung Logistics Ryano Panjaitan said this government strong commitment on this issue is expected to tackle some acute obstacles in logistics business, thus encouraging the national logistics cost cheaper. Indonesia logistics cost remains very expensive, ranging from 23 to 25% of GDP (gross domestic product).
“In addition to burdening truck drivers, the practice of ‘pungli (illegal fee taking) and thuggery, so far, has an impact on logistics costs. It makes logistics cost more expensive, causing a lower national logistics competitiveness, thus finally making inefficiency of our economy and business,” Ryano, who is also a logistics observer and analyst told reporters yesterday (Tuesday, June 15).
As a logistics business player, Ryano expects the coverage of this step (eradicating the illegal fee taking and thuggery) is wider, meaning that it be carried out not only at Tanjung Priok, but also other ports throughout the country.
He affirmed the practice of illegal fee was not a new issue. It had been going on for quite a long time and troubling container and cargo truck drivers. “The prosecution is expectedly carried out not only around Tanjung Priok Jakarta, but throughout the country,” said Ryano.
He said the trucking companies have also suffered much due to this problem. Moreover, the pandemic Covid-19 outbreak has massively hit the trucking business and has not come to normal yet. “Orders for logistics transportation are currently declining due to the Covid-19 pandemic,” he said.
If the truck driver is affected by extortion, he can no longer bring his income home for his family,” said Ryano, whose company has now operated around 300 container and multimodal trucks in several ports in Indonesia, including at Tanjung Priok port.
Agung Logistics is one of national leading a logistics company, deploying more than 300 container and multimodal trucks in several ports in Indonesia, including at Tanjung Priok.
“Overall, as logistics business player, we appreciate very much with the President Joko Widodo strong commitment on this problem and on the fast responses of government bodies,” said Ryano.