24 April 2015

[240415.EN.BIZ] New Indonesia Rule Requiring Extra Screening Risks EU Export Ban

INDONESIAN Transport Minister Ignasius Jonan has issued a new regulation concerning air cargo and supply chain safety that requires logistics companies to have freight screened by regulated agents (RA) in Line 2 (unrestricted) areas at international airports before being moved to the secure Line 1 areas.

Since most RA firms lack screening expertise, logistics firms and airlines will have to screen the cargo once again in Line 1 before shipment boards an aircraft because of fears that security could be compromised during the move from Line 2 to Line 1.

Forwarders have raised concerns that the new policy may have a detrimental impact on exports as the shipment of cargo from Indonesia may be subject to delays or even banned by the European Union, and small- and medium-sized logistics firms may be forced out of business, reports the Jakarta Post.

"There are concerns over safety compromises in the new regulation," said Indonesian Logistics and Forwarders Association chief Yukki Nugrahawan Hanafi.

"From what I know, the EU will have to validate the new procedure, otherwise our freight cannot enter Europe," he said.

Aside from safety issues, the regulation revision could also disrupt the supply chain as it could delay cargo arrivals. "Customers choose air cargo because it's faster. By moving the inspection area, we may see delays of up to two days," Mr Yukki said.

The Law and Human Rights Ministry is currently reviewing the regulation before it takes effect on May 31.

Source : HKSG, 24.04.15.

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