Indonesia container depot tariff to surge by 15%

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Dec 2007

Indonesian businessmen on container depot have agreed to increase the tariff by 15 percent per annum as the oil price has increased so that cost to move the containers has been increasing. The Chairman of the Association of Indonesian Container Depot (Asdeki), Muslan AR, said that the price increase will be in all major ports like Tanjung Priok, Tanjung Emas, Tanjung Perak, Belawan, Panjang, and Makassar. He said the price increase of 10 percent to 15 percent is due to the oil price hike. He said the price of component also has increased. He said that the tariff increase will be on the cost of lift-on and lift-off, container washing, and container maintenance. ''The components of the tariff will increase. But the rental tariff of dumping the container will remain IDR750 per TEUs per day.''Muslan said that the cost of lift off and lift on is US$0.08 per TEUs and it will be $10.7 next year.In the meantime the Association of Depot and Warehouse Companies has predicted that in 2008 the rental cost of depot and warehouse for container will increase by 15 percent to 20 percent.The member of advisory board of Apdepi, Irwandy MA Rajabasa, said that the oil price hike will increase the cost by 8 percent tp 30 percent.Muslan said the cost may increase by more than 15 percent, but it will be less than 20 percent.Muslan added that the overhead cost will also increase by 16 percent to 20 percent.The additional cost is the variable to the four tariff components on containers depot: rental cost of storing, lift-on and lift-off, container washing, and container maintenance. Muslan said the overhead cost is 16 percent to 20 percent to the total tariff.But he said that the overhead cost in every area is different due to the different minimum wage in every province. Jakarta is the province with the highest overhead cost, followed with Surabaya, Medan, Semarang, and Lampung.Muslan said the ports have agreed to standardize the tariff in all ports in Indonesia, but the overhead cost will be determined by every port.The tariff will also consider the rental price of land for 20 years. Every hectare of land will be able to accommodate 700 TEUs of containers.Muslan added that the tariff is aimed at supporting domestic businesses on container depot so that it will be able to compete internationally.Such standardization is needed as container depots are closely related to the businesses of shipping, port, export and import.The cost of storage will be based on the assumption on land price, land development cost, maintenance cost, land and property tax, and land utilization cost.