IATA criticizes Indonesia’s new cargo regulation
IATA has raised its concerns about a new regulation on air cargo and supply chain safety, saying it could reduce the competitiveness of Indonesia’s air freight.
April 27, 2015
By Denice Cabel
The International Air Transport Association (IATA) has raised its concerns about a new regulation on air cargo and supply chain safety issued by the Indonesia’s Transportation Ministry, saying it could reduce the competitiveness of Indonesia’s air freight.
The new regulation, No. 32/2015, requires additional layers of cargo inspections at international airports that will create additional costs. Logistics companies are now required to have their cargos screened by regulated agents in Line 2 (unrestricted) areas at airports before being moved to the Line 1 (secure) areas.
Albert Tjoeng, assistant corporate communications director for IATA Asia-Pacific, told The Jakarta Post: “There is little confidence in the new policy because of the short deadlines and the few clarifications on how the premises of the regulated agents [the designated security inspectors] will be secured. So, airlines will need to screen all cargo a second time at the airport.”
“This will add costs and handling times and actually reduce the competitiveness of Indonesia’s air freight — the opposite goal of what Indonesia is trying to achieve when it claims that it aims to remove bottlenecks,” he added.