Y O U R....V I S I O N....I S....O U R....M I S S I O N

Monday, August 6, 2007

4000 PPJK, 50 TPS Will Bankrupt

Jakarta - Ocean Week : It is so ironic that in the spirit of building up small and medium scale business (UKM) as initiated by President Susilo Bambang Yudhoyono, Finance Minister Sri Mulyani issued two regulations (Permenkeu) No. 65/PMK.04/2007 and No. 70/PMK.04/2007. De facto, the two regulations are absolutely threatening the survival of customs clearance provider (PPJK) and temporary freight station (TPS) of Lane II at port, the two business classified as UKM.

In discussing with Ocean Week, some related stakeholders including Chairman of Jakarta Indonesian National Forwarders' Association (INFA) Syukri Siregar, East Kalimantan INFA Chairman Eduardus Yamin, East Java INFA Chairman Poernomo Soedewo, North Sumatera INFA Secretary Khairul Mahali, and Chairman of Aptesindo (TPS Association) Suryantono, all affirmed that two regulations would absolutely bring the two business into bankruptcy.

As many as 4000 PPJK and 50 TPS throughout the country would stop operation, and thousands of workers would be fired. In Jakarta, Syukri Siregar said, as many as 800 PPJK would stop operation, while in East Java, according to Soedewo, as many as 300 PPJK would soon be affected by the regulation.

Surabaya and Jakarta are now the top-two in number of PPJK as the top-two ports are located within the cities. However, these regulations will affect all customs clearance service providers nationwide, including in Kalimantan. "No PPJK in East Kalimantan able to store IDR250m as guaranty," Yamin said.

Meanwhile, as many as 50 TPS have stopped operation since early July as they have not got over brengen (OB) order from container terminals anymore. "The minister regulation does not allow OB service at Lane II," said Suryantono.

In responding such regulations, many related stakeholders have prompted protest. INFA for example, would send notice to finance minister to ask the government to reevaluate the policies. "We are preparing letter to finance minister on asking to reevaluate those regulations," said Masli Mulia, INFA Chairman.

The regulation 70/PMK.04/2007, according to PPJK, has absolutely brought them into bankruptcy. How does this regulation affect business? According to PPJK provider, the Article 8 Chapter IV of the regulation on PPJK requirement and Customs General-Director Regulation No. P-22/BC/2007 on Manual Implementation in PPJK Registration have made them unable to survive. In obtaining the register number, according to regulation, a PPJK should prepare amount of money as guaranty with numbers according to their types. A Type A1 PPJK should collect IDR250m, while IDR150m of A2, IDR100m of A3, IDR50m of A4, and IDR25m of other types.

The new regulation has totally changed the previous mechanism. In previous practice, a PPJK paid only IDR750,000 to INFA as guaranty board, and only IDR25m to customs office as guaranty. "We will be blocked for registration if we unable to pay it," Gagan Kartika, Director of PT Kumaitu Cargo, said, adding that PPJK remained a UKM. "Our daily income from document handling is so small. Some get no more than IDR100,000 per day. How can we pay for such guarany?" he said.

Hence, PPJK providers want a lower guaranty. "We don't mind with the guaranty, but it should based on the PPJK capability," said Sugiyanto, Director of PT Ladur Utama Mandiri. According Sugiyanto, IDR50m might be preferable for A1 while IDR25m for other types. "So, we absolutely refuse these regulations," he said.

Gagan and Sugiyanto question the reason of Customs on such high guaranty to PPJK, while importers are not affected by the regulation though they are in high risk from tax and import duty. "PPJK only handles document, a transaction of IDR50,000 only," Gagan said.

Meanwhile, INFA Vice Chairman Iskandar Zulkarnain said that such guaranty rate was too high. Hence, INFA would continue to urge the government to reevaluate the policy. "Guaranty of IDR25m to 250m is too much for PPJK," he said.

Syukri Siregar also sees that such regulation is contradictive with Presidential Decree Inpres 6/2007 on Accelerating Infrastructure and Real Sector and UKM Development. "PPJK is UKM with capital of teens million only. So, they are absolutely unable to pay such guaranty," he said.

Echoing the view, Soedewo said that the regulation is contradictive with the Law No. 10/1995 that has been revised in 2007. The law underlines four guaranties : cash money, bank note, customs bond, and other guaranty. "But the new minister regulation cuts the other guaranty. This is so funny that the minister regulation is not in line with the law," said Soedewo.

58 TPS Bankrupt
As many as 58 TPS (temporary freight station) are going to bankrupt following the issuance of finance minister regulation (Permenkeu) No. 70/PMK.04/2007 on custom area and TPS as they (TPS) do not get Over Brengen (OB) order. "TPS at Lane II can not operate any longer due to the regulation," said Suryantono.

The regulation only allows OB order at Lane I, resulting a bankruptcy of 85 TPS now operating at Lane II.

In addition to their loss, stoppage of TPS operation at Lane II has also caused stagnancy at JICT and TPK Koja as the two terminals have limited areas for container storage. As a result, YOR (Yard Occupancy Ration) of Tanjung Priok's container terminals have reached 90%.

In responding such protest, Head of Customs Office Area VII Agung Kuswandono said that the two minister regulations are meant to rearrange the internal aspects of customs service.

He also said that such guaranty was meant to prevent any illegal brokerage practice in customs service. "Recently, there usually hand uncompleted documents, while they want for a fast service."

Kuswandono added that such guaranty is meant to make the providers to seriously establish a PPJK busines as PPJK are representative of importers. "In addition, the regulations are meant to prevent any under-invoicing practices," he said. [talu/ow].

Ocean Week, No. 134/VI, July 2007